One could easily find countless examples of how things went from bad to worse last year. Whether it was global macroeconomic instability, Russia’s invasion of Ukraine, funding shortfalls, supply chain disruptions or any number of other factors all working together to create an extremely challenging experience for anyone attempting to operate a company. 2015 has not been without its challenges, but the year is drawing to a close and there are many signs that things are starting to turn around. Hopefully this trend will continue into 2016 and help companies rebuild their businesses from the ground up in the midst of a chaotic environment.
Often, we don’t see the opportunities or possibilities in our difficult situations. However, in the midst of difficulty lies opportunity. Sometimes we just need aboost to see it. When I was having my first baby, I struggled with breastfeeding and making enough milk. It felt like every daywas a challenge and there seemed to be no end in sight. But this was also when I saw theopportunity to start writing again after years
As companies cut costs to extend their runways, product managers are finding innovative ways to make the most of a tough situation. One such method is creating interesting products that can save companies money in the long run. By creating innovative products, product managers can keep their businesses afloat and extend runway lengths with little to no cost overruns.
Focus on monetization
The venture capital market has become more conservative in the past year as a result of the global economy and subsequent decrease in funding. As Series A rounds have decreased from $5.2 billion in 2018 to $3.5 billion so far this year, it is evident that this trend will continue for at least another six months. “Growth at all costs” no longer applies to startups, and they need to find other means of sustainable financing if they want to survive in today’s competitive environment.
There is always a lot of discussion surrounding monetization schemes, particularly when it comes to digital products. This year, companies are expected to focus on unit economics and optimizing conversion rates in order to get the most out of their limited cash resources. One of the most important tasks for product managers will be balancing CAC (Customer Acquisition Cost) and LTV (Lifetime Value), as well as optimizing conversion rates in order to increase profits. Additionally, pricing should be considered during this time period, as bundles and subscription tiers can greatly boost revenue potential.
Retention is king. There’s no reason to think about growth if your retention is unstable.
One of the most important aspects of a successful business is its retention rate. If people are constantly leaving your company, it will be difficult to grow or even survive. Obviously, there are many factors that contribute to a company’s retention rate, but making sure that people feel engaged and excited about their job is key. While growth may not always be flashy, if you can
To increase your chances for long-term success, it’s important to experiment with paywalls and implement prediction models to manage the LTV:CAC ratio. By doing so, you can ensure positive cash flow while maximizing the return on investment potential of your business.
Take advantage of the commoditization of AI
In the early 2000s, many people feared that machines would eventually replace human engineers and product managers. These fears haven’t been eased by recent layoffs at tech companies. Instead, ChatGPT is demonstrating just how quickly AI platforms can proliferate and wreak havoc on the workforce. Consequently, businesses are investing millions in similar technologies in order to stay ahead of the curve. However, given how fast AI platforms are growing and changing, it’s uncertain if these investment will be worthwhile in a few years time.
Some companies are looking to commoditize AI by selling it as a service. This means that customers can access the technology through different platforms and applications. This is an opportunity for small businesses to get started with AI, as well as for large businesses to outsource some of the work.
