511: Starting a Startup During COVID-19?

What It Covers

Steli Efti and Hiten Shah evaluate whether COVID-19 presents a good or bad time to launch a startup, examining opportunity costs, cash flow priorities, and how to approach building during economic uncertainty.

Key Questions Answered

• •Opportunity cost advantage: Corporate job stability has decreased significantly during COVID-19, making entrepreneurship less risky compared to traditional employment paths that previously offered more security and predictable career trajectories over the next two years.
• •Cash flow imperative: Start ventures that generate revenue within the first or second month rather than building for a year before monetization. Conservative spending of personal savings becomes critical during periods of high uncertainty compared to previous downturns.
• •Pain killer requirement: Build products people will pay for today, not in six months when budgets unfreeze. Economic downturns eliminate nice-to-have products as customers set much higher bars for spending decisions and demand immediate value propositions.
• •Historical advantage: 2020 offers more systematic support structures than 2000 or 2008 downturns, including expanded gig economy options, freelancing platforms, online communities, greater internet access, and niche audience monetization capabilities that reduce barriers to starting.