Now More Than Ever, the Startup Space Needs True Turnaround Artists.

Post-COVID startup excesses have created a vacuum only gritty, skilled operators can fill

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When COVID hit, the initial panic wasn’t just about health. It was also financial. Governments poured trillions into global economies, staving off collapse but also inadvertently igniting a wave of frenzied spending.

People who had never left their zip code were suddenly posting selfies from Santorini. Consumers were flush with cash, and venture capital followed. Startups were no longer asked to prove traction or revenue. An idea and a landing page could land you a seven-figure seed round from funds eager to catch the next unicorn.

From Hype to Hibernate

In 2021 alone, global VC investment hit $643 billion — double the amount from just a year prior. The barrier to funding was historically low. Pitch decks were shorter. Diligence was lighter. And in many cases, product-market fit was an afterthought.

Today, the landscape looks drastically different. VC pullback has been sharp. According to Crunchbase, startup funding dropped by more than 50% in 2023. The result? A trail of defunct but once-promising companies.

Consider ventures like Streamlytics and CapWay, which once commanded media buzz and millions in funding. These weren’t scams or grifts — they were viable business ideas, poorly managed and overcapitalized too early.

“Startups don’t die from starvation. They die from indigestion.” — Dave McClure, 500 Startups

When Money Becomes the Problem

The shift from frugality to excess caught many founders off guard. The old-school operator who knew how to stretch $5,000 to an MVP was replaced by pitch artists who scaled before learning to sell.

The average early-stage startup in 2021 raised nearly $19 million before even reaching product-market fit. These inflated burn rates have proven unsustainable.

The Return of the Operator

Now more than ever, what the startup space needs is not more "visionaries" — it needs turnaround artists.

These are leaders who can:

• Cut burn without killing morale

• Focus the product roadmap on customer need, not investor optics

• Replace growth hacking with actual sales discipline

Think Carolyn Childers, CEO of Chief, who managed to pivot her business into profitability after a bloated expansion, or Ben Horowitz, who once said, “There are no silver bullets, just lead bullets.”

Lessons from the Cleanup Crew

Here’s what successful turnaround professionals do:

Slim down operations

They prioritize the vital few over the trivial many. McKinsey reports that cost transformation during downturns often leads to better long-term outcomes than pre-recession spending.

Return to customer obsession

Instead of trying to impress VCs, they listen to the paying user. Real feedback loops replace vanity metrics.

Rediscover grit

Startups born out of necessity tend to last longer than those born out of abundance. This is the old-school garage ethos Silicon Valley forgot.

Why the Time is Now

With over 3,200 startups shutting down globally in 2023, the need for skilled recovery is urgent. Entire portfolios are at risk. Activist funds that once seeded companies without traction are quietly folding or pivoting into debt instruments.

Turnaround isn’t glamorous, but it’s necessary. This era belongs to those who can sell, adapt, and execute without burning a pile of investor money to do it.

“You either run the business or the business runs you.” — Henry Ford

Just launched your new business and need resources to ace direct marketing at lower costs with higher ROI?

Check out Salesfully’s course, Mastering Sales Fundamentals for Long-Term Success, designed to help you attract new customers efficiently and affordably.

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