How to respond when market changes negatively impact your company's KPIs - Mads Himstedt, Morningscore

About this episode

Market changes are part of entrepreneurship – but what do you do when conversion rates suddenly plummet, liquidity planning becomes difficult, and marketing becomes too expensive? Mads Himstedt, founder of Morningscore, has lived through exactly these challenges and shares his insights on how startups can respond to unpredictable market changes.

What is Morningscore?

Morningscore is a user-friendly all-in-one tool that simplifies SEO through personalized guides. However, like many other companies, the business has had to experience the effects of global uncertainty firsthand.

The Challenge: When Everything Changes

Global market uncertainty caused Morningscore's conversion rates to drop significantly. This led to a chain reaction: complicated liquidity planning, expensive marketing, and additional operational problems. Suddenly, nothing worked as it had before.

Such situations pose a crucial question for founders: How do you deal with it when proven strategies suddenly stop working?

Second Level Effects: The Impact Within the Company

Market changes don't stay outside the office door. They create additional effects that ripple through the entire organization. Understanding and proactively addressing these "second level effects" is crucial for startup survival.

Changing KPIs don't just affect operational work – they also influence attractiveness to investors. VCs look closely at the numbers, and declining metrics can jeopardize the next funding round.

The Path to Cash Flow Positive Despite Market Fluctuations

Despite the challenges, there are concrete measures that can help achieve cash flow positivity. Himstedt emphasizes the importance of acting quickly and decisively without falling into panic.

The most important approaches include rigorous review of all expenses, focusing on the most profitable channels, and honest reevaluation of company strategy.

Proactive Team Communication

One of the biggest challenges during difficult times is communicating with the team. How do you convey changes without demotivating your people? Himstedt provides practical tips on how founders can create transparency and lead their teams through tough times.

Open, honest communication is key. Taking the team along and developing solutions together not only builds trust but can also lead to better outcomes.

Objective Help During Crisis Times

In times of crisis, it's difficult to remain objective. External advisors, experienced mentors, or other founders can help view the situation soberly and uncover blind spots.

The Value of Experience

Every crisis brings learnings. The experiences from difficult times make founders more resilient and better prepared for future challenges. Himstedt emphasizes that these experiences are invaluable – even though they can be painful.

Avoiding Common Founder Mistakes

Many founders make similar mistakes during crisis times. Waiting too long before taking action is one of the most common. Neglecting communication or falling into a lone-wolf mentality can also be fatal.

Conclusion

Market changes are inevitable, but they're not the end of the world. With the right approach, proactive communication, and willingness to act quickly, startups can survive difficult times. Mads Himstedt's experiences show: it's not about avoiding crises, but about handling them better.