There is no denying that both startups and large multi-national corporations are facing troubling times. One only needs to quickly take a look at TechCrunch’s Layoff Tracker to confirm that. But enough with the doom and gloom! All of the best companies that are around today survived through difficult times at some point. I shudder to think of where we would be today if innovation stagnated during previous challenging economic conditions.

Just look at how cloud computing and Software as a Service (SaaS) startups are doing right now. They are still growing; acquiring funding and helping others build businesses economically. IT spending on software is still projected to increase in 2009. Step down from the ledge and take a look at some pointers for up and comers out there who are determined to make a big impression within this most uncertain of economic landscapes.

1) Stay lean – This comes from personal experience. Layoffs are no fun for executives and are anathema to employee morale. Money is going to be hard to come by so it is important to start with a team that is ready to conquer any challenge that might confront it without having too much excess. Find what is absolutely necessary and stick with it until burn rates turn into profitability. It is so much easier to trim the fat from the outset than to do it once it becomes engrained in the DNA of the company.

2) Avoid overhead – Company A is a growing video web site delivering professional content with an advertising-based business model. Company B makes $100,000 monolithic servers. Right now, both are struggling. But, running Company A doesn’t cost nearly as much, thanks to on-demand video platform solutions and cloud infrastructure, as running Company B. Keep that in mind when deciding what direction to take the startup in. Have the ability to be nimble if the direction of the company needs to change quickly.

3) Value proposition is king – Give customers more than what they pay for. For fans of “The Office” think back to season two when Temp Ryan, who was pursuing his MBA at the time, once posed the following question to his boss, Michael:

Is it cheaper to sign a new customer? Or to keep an existing customer?

Michael, after much consternation, finally mutters questioningly, “It’s equal?” Of course, as is often the case in the show, Michael is dead wrong and Ryan points out that it’s 10 times more expensive to sign a new customer. The moral of this obscure recollection is that once you have a customer, do what it takes to make sure they stay happy and can’t function without the service the company provides. This is a practice that cloud computing and SaaS companies grasped almost immediately and have been implementing since the turn of the millennium.

Despite the challenging conditions, there is still plenty of opportunity for a lean startup to make a huge impression and stand out from the pack. Our company, Delve Networks, has seen revenue grow consistently since our launch. So it can be done. Following these steps is a great start to not only navigating through these choppy waters, but also, positioning the company for a wildly successful run now and in the future.

 < ><-->