As the COVID-19 crisis has rocked the global economy, it has also upended the best-laid plans made by startups in every industry. It’s helpful for high-growth companies to look at lessons from past downturns to find pockets of opportunity as they navigate this uncertain landscape.
“I think some of the trends that we saw before the recession might accelerate as we come out of it,” says Anne Berry, Executive Director, J.P. Morgan Corporate Finance Advisory. “This very challenging time is allowing some firms to highlight what they do best to their customers in a way they might not have been able to do before the recession.”
Take the case of Amazon.
“It’s not like Amazon was highly profitable during the dot-com bust, but they still went after cost savings while figuring out ways to take advantage of shifting consumer appetite and shifting consumer sentiment,” Berry says. “So offering low prices to their consumers while cutting costs internally allowed them to grow significantly during the dot-com bust and come out of the whole period that much stronger.”
Picture: Getty Images