It was last year. It’s like riding through hell. Global macroeconomic instability, Russia’s invasion of Ukraine, lack of funding, supply chain disruptions, and many other factors have made running a company extremely challenging.
It sounds cliché, but in the midst of adversity lies opportunity. Sometimes, you just need an incentive to see it through.
As companies cut costs to extend their runways, here’s how product managers can take advantage of the tough situation:
Focus on generating income
The market has changed a lot in the past year. VC funds have taken a cautious and conservative approach that has resulted in a 35% drop in funding in 2022, and if the first few weeks of 2023 are any indication, that trend may continue. “Growth at any cost” is no longer a good idea.
This year is expected to be a time for companies to identify their unit economics, and product managers will need to focus on monetization to deal with cash shortages. It’s important to balance CAC and LTV, increase conversion rates, and understand pricing, bundles, and subscription levels.
Retention is king. If your retention is unstable, there is no reason to think about growth.
To see exactly what you can accomplish, experiment with paywalls, try the Darius Contractor Psychedelic Framework, and apply predictive models to control your LTV:CAC ratio and drive positive cash flow.
Use AI merchandise
In the year By the end of 2022, Google was worried that OpenAI had seen such success with ChatGPT, and today companies are pouring millions into building AI technologies similar to ChatGPT. The rapid growth of these AI platforms has raised concerns that AI will eventually replace vast numbers of engineers and product managers, and those worries aren’t alleviated by continued layoffs at tech companies.
But you can consider this AI product as an opportunity. Of course, there are endless ways to use and take advantage of this rapidly evolving technology.
