Startups actually get good resources when there is slow down irrespective of the industry in which the startup is.

The saying goes someone’s loss is someone’s gain, bigger companies which get into trenching of human resource to shed the expenditure in this process good brains are also asked to leave.

This movement is good for startups as the people who felt good working for bigger companies when they lose jobs feel let me be boss in startups so this movement helps startups in getting good valuable and experience human resources at affordable cost.

Startups can do lot of experiments with there products or services during slowdown as it will give clarity what actually is the need of the hour rather than giving everything to customer.

For e.g if you are software product company or into SaaS model the slowdown will help you in identifying the correct price and the product services which are required to customers even during slowdown.

The reality of customer loyalty is tested during slowdown, or even the business, which have vendors as startups do trim down drastically and this phase actually helps even startups to understand what is correct demand and what is the supply that needs to be given.

Though bootstrapped startups don’t get affected much with slowdown cash rich startups become more cautious in spending, as you need cash flow to survive till the revival happens

Its simple during drought the animals, which survive, are the fittest ones who endure the drought and survive those who perish are the one’s who do not have stamina to survive.

The same applies for startups if there business models and offerings are need of the hour these startups survive if the business models were just off springs grown mushrooms then they perish

So slowdown helps startups in validating business models