Going cockroach: how to stretch your ‘days to death’ and outlast the storm

You’ve survived the initial shock – the rug being yanked out from under your feet (we covered this in last week’s blog). But what if the whole game has changed for the foreseeable future? It’s time to go into cockroach mode. This isn’t about doom and gloom. Sure, cockroach mode isn’t pretty or glamorous, but it’s ruthlessly effective. It’s all about hunkering down to your minimum viable business and doing whatever it takes to make sure you’re still standing when the recovery finally rolls around.

Why would you want to be a cockroach?

Cockroach companies won’t grace the cover of Wired or trend on LinkedIn. They’re not glamorous or exciting – but they’re bloody great at surviving. The term “cockroach startup” was famously coined by investor Dave McClure in 2013 to describe resilient companies that optimise for steady, sustainable growth over flashy hypergrowth. Switching to cockroach mode means putting growth on pause and focusing on survival. 

You scale down to the basics – the core products or services that keep the lights on – and slash anything that isn’t essential. It’s about shrinking to the leanest version of your company that can still operate effectively (your minimum viable business). Think of it as playing defence so you can live to fight another day. Remember, not dying is strategy number one. Often, the winners in business are just the ones who survive the longest.

Importantly, cockroach mode is not the same as playing dead. You’re not giving up; you’re conserving energy and making every move count. You still have a goal and a plan – it’s just scaled back to fit the harsh reality of your new environment. You’re staying alive and staying relevant, ready to emerge when conditions improve.

Know your days to death number

First things first: figure out exactly how long you’ve got if you change nothing. How many days to death does your cash reserve buy you? Yes, the phrase is dramatic – but knowing this number is crucial. It’s basically your financial runway expressed in days – how long until the money runs out and you have to turn off the lights if no new cash comes in.

If you don’t know this off the top of your head, drop everything and calculate it now. Cash in the bank divided by daily operating cost = days until you flatline. Is it 1,000 days? 100? 60? Whatever it is, make it your key metric for survival. What’s your comfort number? And how close are you to it?

Once you’ve got your days-to-death figure, your mission is simple: extend it. If you have 90 days of cash, how can you make it 180? If you have 180, shoot for 365. This means cutting burn and/or boosting cash flow (more on that in a minute). The point is to give yourself breathing room. The more days you have, the greater the odds you’ll see the other side of this storm.

Oh, and communicate this reality with your leadership team. There’s nothing like a ticking clock to concentrate the mind. It’s not about spreading panic; it’s about rallying everyone around the urgency of the situation. “We have X days of cash left, folks. Let’s make every one of them count.”

Strip down to your minimum viable business

Time to channel your inner Marie Kondo and declutter the business – ruthlessly. In cockroach mode, nothing non-essential survives the cut. Remember all those nice-to-haves that crept in during the good times? The designer coffee machine, the endless SaaS subscriptions, the “innovation lab” that hasn’t produced anything innovative since last Christmas? Yeah… all of that has to go.

Take a hard look at every expense and ask, “If we remove this, will we still have a business?” If the answer is yes, out it goes. This is the art of subtraction – carving the business down to just the core that actually generates revenue or serves customers. Cut deep, cut fast, and cut now, so you only have to do it once.

This includes tough calls on headcount. Cockroach mode might mean shrinking your team to a fraction of its former size. It’s brutal, but it’s better than running out of cash and losing everyone. Focus on keeping the people who are absolutely critical to delivering your core product or service – your best performers, your scrappy problem-solvers. If someone isn’t pulling their weight or doesn’t fit in the lifeboat, now’s the time to part ways. (And if you do have to lay people off, do it with humanity and help them land on their feet – your future conscience and reputation will thank you.)

While you’re trimming the fat, don’t cut into the muscle. You still need to deliver for the customers keeping you afloat. So maybe you pause that experimental project, but you keep the customer support lines staffed. Cockroach mode is a game of survival, not hibernation – you still need to serve your customers and stay lean and mean.

Oh, and defer any big capital expenditures. Now is not the time to be buying foosball tables or acquiring that “strategic” company just because it’s on sale. Save your bullets. As we warned in Staying profitable through growth, now is no time for ego-stroking expenses – every pound must pull its weight in keeping your business alive.

Focus on the figures

If you’re going cockroach, you need to obsess over cash. That means getting cash in faster and letting it out slower, without breaking promises or the law. Put the business on war footing financially: every expense is scrutinised, every invoice chased.

Some practical cash moves:

• Bill early and collect fast. Don’t wait until month-end to invoice – send bills immediately and chase up what you’re owed (politely but firmly). Hell, offer a small discount for quick payment if it gets cash through the door faster.
• Trim payment outflows. Negotiate with suppliers to extend payment terms. Can you go from 30-day to 60-day payables? Every extra day keeps cash in your account longer.
• Freeze hiring and big purchases. Needless to say, put a stop on adding headcount or buying anything that isn’t absolutely necessary. Future expansion plans go on ice until further notice.

Remember, cash = time. Every pound you hang onto is another day of life for your business. Monitor your cash flow like a hawk. Weekly cash reports? Try daily. Make your finance team the MVPs – their vigilance could be the difference between survival and death.

Also keep an eye out for lifelines. Are there government support schemes, emergency loans, or investors willing to throw you a rope? Explore these carefully. Taking on debt or dilution isn’t ideal, but if it buys you crucial time and you have a plan to manage it, it could be worth it. Just go in with eyes open – a desperation deal can become a millstone if you’re not careful.

Prioritise sales like your life depends on it (because it does)

When the pie is shrinking, you need to fight hard for your slice. Sales prioritisation means focusing your limited resources on revenue opportunities that are most likely to pay off. In other words, be choosy. This is not the time to chase every shiny prospect or enter every random market. Double down on your core customers and markets – the ones who need you most and generate the most profit.

Maximise revenue from the customers you still have. Upsell, cross-sell, serve the hell out of them. It’s far easier to get an existing customer to spend a bit more (if you’re truly adding value) than to land a totally new customer in a storm.

Also, take a hard look at profitability by customer and product. Know exactly which deals make money and which don’t. If a segment is unprofitable, either fix it or drop it — you can’t carry dead weight in cockroach mode. As I discussed in Staying profitable through growth, unit economics matter. Don’t chase revenue for vanity’s sake; every sale needs to contribute to your survival.

Make sure your value proposition is razor-sharp and speaks to an urgent problem. In uncertain times, customers flock to quality – they want the best bang for their buck. If you can show that doing business with you is a no-brainer ROI, you’ll win even when budgets are tight. If not, no amount of salesperson hustle will save the deal.

One more thing: in lean times, customer retention is gold. Make sure your best customers feel loved. Over-deliver on service. Have your execs (yes, including you) personally check in with key accounts — in a downturn, just turning up can be enough to stave off churn. The last thing you need is your existing customers jumping ship.

Lead with resilience and (realistic) optimism

Finally, let’s talk about leadership. Cockroach mode is a test of your mettle as a CEO. Your team will take cues from you: if you panic, they panic; if you stay calm and clear, they’ll hunker down with you.

Leading in lean times means being transparent and honest about the challenges, but also painting a picture of eventual victory. It’s a fine balance: acknowledge that things are tough (everyone knows it anyway), yet express your confidence that by taking these steps, you will get through it. Share updates frequently – even if nothing has changed, the act of communicating reassures people that you’re on top of it. As we’ve learned in Embracing the unknown, uncertainty is less scary when leaders own it and talk about it openly.

Be more present than ever. If possible, rally the team together regularly (even virtually) — facing challenges as one unit makes them easier to bear. Make sure every manager is echoing the same message, so no one is left in the dark on the plan or their role in it. During crises, a CEO essentially becomes the Chief Energy Officer – it’s on you to keep the company’s spirit up.

Encourage scrappiness and creativity — constraints can spark innovation. Celebrate small wins (they matter more than ever). And be real with your team: nobody buys fake optimism. It’s okay to admit, “Yes, this is hard,” as long as it’s followed by, “but we have a plan and we have each other.”

Lean times are when true leaders shine. If you can guide your people through this storm – keeping them focused, motivated and unified – there’s not much that can stop you when the skies clear.

Still standing when the sun comes up

Cockroach mode isn’t forever. It’s a temporary state to ensure you make it to the other side of a downturn or crisis. And the goal isn’t just to survive, but to survive with the pieces in place to thrive later. One day, the clouds will part and the market will pick up again. You want to be there, with a business that’s lean, hungry, and ready to grab new opportunities while competitors’ bones are still rattling in the dust.

Remember, going cockroach is not an act of surrender. It’s an act of defiance. You’re saying, “We’re not quitting. We’re going to endure whatever hell this is, come out the other side, and maybe even laugh about it later.” The companies that make it through downturns often emerge stronger, more disciplined, and with a tighter team bond.

So count your days to death and then do whatever it takes to add more days. Cut the fluff, save your cash, love your customers, and lead your people through the dark. Do this, and you won’t just outlast the storm – you’ll be poised to spring forward when the sun rises again.

Are you ready to be the cockroach that survives? If not, you know what to do — get started now. Tough times don’t last, but tough companies do.

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Written by business coach and leadership coaching expert Dominic Monkhouse. Contact him to schedule a call here. You can order your free copy of his book, Mind Your F**king Business here.