6 May 2025

NAVIGATING THE ROLLER COASTER: 4 STRATEGIES FOR MANAGING YOUR STARTUP’S UPS AND DOWNS

Launching a start-up means living to the rhythm of fund-raising, strategic pivots and unforeseen market events. Between euphoria and uncertainty, each decision can change the future of the company. Access to financing, acquiring the first customers, managing growth: the challenges are numerous, and the slightest economic change can complicate everything.

So how do you ensure that your startup isn’t a shooting star, but rather a resilient company capable of growing despite the turbulence?

Here are some concrete strategies for staying in the driver’s seat, whatever the market conditions.

1. Anticipate rather than react

The biggest pitfall of startups is that they are constantly in reaction mode, instead of being proactive. Successful start-ups know how to juggle short-term execution with long-term strategy.

Take Lightspeed, for example. Founded in Montreal, this retail management software startup anticipated the needs of retailers long before the rise of omnichannel commerce. Thanks to this vision, the company has established itself in an ultra-competitive market and raised hundreds of millions of dollars to accelerate its growth.

To do:

Plan scenarios:
What happens if an investor pulls out? If a competitor enters your market? What if your costs explode? Anticipate these situations and have action plans ready.

Stay on top of trends:
The market evolves quickly. Keep a constant watch to detect new opportunities before your competitors do.

2. Control your finances like a CFO

Cash flow is the lifeblood of any business.

Too many companies die because they fail to anticipate a sudden drop in cash flow. In times of economic uncertainty, investors become more cautious and financing cycles can become longer.

A good example of cashflow management in Quebec is GSoft, which has been able to grow without relying exclusively on fund-raising. By adopting a sustainable and profitable business model from the outset, this tech company has been able to weather market fluctuations without compromising its vision or growth.

To do :
Model several financial scenarios
Prepare 3 types of scenarios: pessimistic, realistic, optimistic to avoid unpleasant surprises.

Reduce your dependence on fundraising by looking for other sources of revenue:
Grants, strategic partnerships, partial self-financing.

Be transparent with your investors:
A good investor prefers a founder who anticipates rather than an entrepreneur caught off guard.

3. Protect your team and your corporate culture

When a startup is going through a storm, team motivation can take a hit. A climate of uncertainty leads to stress. A demobilized team can cost more than the crisis itself.

Take the example of Hopper, a Montreal-based startup specializing in travel reservations. When the pandemic struck, the company had to completely rethink its business model. Thanks to open communication with its team and a strategic pivot towards travel insurance and ticket flexibility, it not only survived, but was able to bounce back and continue its hypergrowth.

To do:
Stay transparent with your team:
Share your challenges and your vision. An informed team is a committed team.

Provide opportunities for development:
Offer training, increased responsibilities and opportunities for internal growth.

Build a network of mentors and experts:
Surround yourself with experienced people who can guide you through critical moments.

4. Turn uncertainty into opportunity
Times of crisis are not just threats: they also create opportunities.

A good example from Quebec is Dialogue, which capitalized on the growing demand for telemedicine at just the right time. By identifying an emerging need and pivoting quickly, the company has become a leader in digital health in Canada.

To do:
Listen to your customers:
What are their new needs? Is there a possible pivot to serve them better?

Optimize your resources:
If you have to slow down your growth, take the opportunity to strengthen your product, improve your processes and build a stronger brand.

Test new business models: Subscription, marketplace, B2B… Explore new sources of revenue to adapt.

Resilient startups are those that dare to anticipate

Ups and downs are inevitable, but startup founders who adapt with agility, manage their finances intelligently and know how to keep their team engaged are the ones who build sustainable businesses.

Do you know an innovative Quebec startup with strong growth potential? AQC Capital has over $10M to deploy! 🚀 Don’t hesitate to refer them to us!

 

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