Today I had a conversation with a friend and fellow founder who’s active in the Atlanta start-up community. We shared our views on the macro landscape and what it means for the entrepreneurial community locally and nationally. Here are some of our takeaways:

• Communication – Founders should communicate often with their teams, investors, banks, and partners. If you don’t have all the answers, communicate what you do know. There’s nothing worse than being in the dark, at risk of being blindsided, during a time of crisis.
• Capital – Capital will be less abundant. I assume that banks will honor previously extended credit, but they probably will be reluctant to extend new credit. Venture capitalists are also likely to pull back in the short term until it’s clear how (IPO, M&A, etc.) and at what valuation they can exit their investments and return capital to LPs.
• Delayed closings – Venture capital deal closings could be affected if LPs default on capital calls. If this occurs en masse (which I believe is unlikely), VC deal activity will slow.
• Contingency plan – Start working on a plan and define the thresholds that will trigger it. It’s better to have a plan and not need it than be caught without one.
• Experience – The last economic downturn was more than a decade ago. If you didn’t experience it, seek out entrepreneurs who survived it and learn from them.
• Cash is king – Monitor your balance daily.
• Accounts receivables – Know who owes you, how much they owe, and when their payment is due. Reach out to each customer with a past-due account to gauge their ability to pay.

The business landscape is changing at an unprecedented pace. I encourage entrepreneurs to be proactive. If you’re an entrepreneur who lived through the last downturn and you have bandwidth, I encourage you to reach out to other entrepreneurs. Sharing your experience or just lending a listening ear could change someone’s trajectory.