374 | The Startup Advantage in a Downturn with Paul Zelizer

Paul Zelizer is the host of Awarepreneurs, the world’s longest running social entrepreneur podcast, the co-founder of NM Tech Talks and a business coach/consultant for social entrepreneurs and cleantech startups for the past 18 years.

This episode is sponsored by the coaching company of the host, Paul Zelizer. Consider a Strategy Session if you can use support growing your impact business.

Resources mentioned in this episode include:

Transcript of The Startup Advantage in a Downturn

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You can read the full transcript of this episode here

Key Takeaways in The Startup Advantage in a Downturn with Paul Zelizer

1. Introduction and Host Background

  • Overview of the Awarepreneurs podcast and its mission

  • Introduction of Paul Zelizer as host and guest for this solo episode

  • Personal credentials: co-founder of NM Tech Talks, 18 years as a business coach/consultant for social/clean tech startups

  • Introduction to episode topic: startup advantages during economic downturns

2. Story from NM Climate Meetup

  • Description of a recent climate tech networking event in Albuquerque

  • Shared experiences with other founders about challenges and benefits of launching startups during complex economic times

  • Question raised: Is it wise to start a business now?

3. Challenges of Launching in a Downturn ("Headwinds")

  • Reduced consumer spending across income levels

  • Federal and state funding cutbacks (including grants and contracts)

  • More cautious VC investment (smaller, slower rounds, longer diligence cycles)

  • General "chilling effect" on the startup ecosystem

4. The Paradoxical Opportunity

  • Despite headwinds, unique advantages exist for startups

  • A strong value proposition stands out more amidst fear and noise

  • Traction is more noticeable due to fewer businesses entering the market

  • Event recap: NM Tech Talks’ high-impact launch and positive community feedback

5. Four Strategies for Lean, Impact-Oriented Startups

  • A. The Power of Focus

    • Tagline: "Igniting opportunity through live events and community"

    • Focused on creating opportunity for New Mexico’s diverse communities (Hispanic/Latinx, Native American, etc.)

    • Emphasis on non-traditional career pathways (boot camps, certifications)

    • Example: Rudy Para’s career path and community benefit

  • B. Building for Purpose

    • Serving underrepresented communities

    • Purposeful event design (e.g., climate-focused hackathon using real-world data)

    • Alignment with ethics, values, and genuine community needs

    • Differentiation in a marketplace often missing human-centered, purposeful programming

  • C. Emphasizing Social Capital and Patience vs. Traditional Capital and Speed

    • Lean on donated venues, speakers, and community partnerships

    • Collaboration among eight organizations for event execution

    • Social capital and patience allow for growth despite limited funding

    • Example: Pulling off a high-value event with limited resources, focus on inclusivity

  • D. Funding Diversification as a Survival Strategy

    • Avoiding dependence on one funding source (equity, grants, sponsors, ticket sales, in-kind support)

    • Modest sponsorships and grants from aligned organizations

    • Both co-founders have other sources of income, allowing patience and longer-term vision

    • Importance of combining revenue streams for stability and impact

6. Recap of Lean Startup Mindset

  • Addressing headwinds facing climate ventures and underrepresented communities

  • Strategies for success with minimal, but well-leveraged, resources

7. Reflections on Downturn Startup Advantages

  • Opportunities: reduced competition, more available talent, increased attention for those gaining traction

  • Examples from local clean tech scene: talent availability due to recent funding cuts

8. Three Prompts for Listeners

  • Areas for lean, adjacent or experimental startup thinking

  • Smarter use of available resources to gain traction

  • Methods for catalyzing early traction in launches

9. Closing Thoughts and Call to Action

  • Encouragement for listeners to share what they’re working on or launching

  • Gratitude for listeners’ efforts to challenge cultural assumptions through impactful business

  • Request to share the episode with other social entrepreneurs for greater impact

  • Invitation to strategy sessions for personalized support

  • Encouragement to keep working toward positive impact and values-driven action

Paul Zelizer