Strategy question

Given the COVID-19 situation, cult fit has a 6-month runway for its business. How would you extend the runway to 18 months?

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What this question tests

Strategic crisis response: can the candidate propose concrete, prioritized levers to extend runway under a real, time-bound constraint.

How to approach it

  1. Clarify the constraint: extending runway from 6 to 18 months means either cutting burn by roughly two-thirds, raising new capital, or both.
  2. Assess the market context: COVID-19 shut down in-person fitness, so cult.fit's core studio business collapsed overnight, forcing a pivot.
  3. Identify the company's advantage to lean on: existing user base, trainer network, and brand trust that could shift to a digital product.
  4. Propose options: pivot quickly to at-home digital fitness content and equipment, cut non-core costs like studio leases, and raise a bridge round if the digital pivot shows early traction.
  5. Recommend prioritizing the digital pivot first since it preserves revenue and the core asset, the trainer relationships, while cost cuts alone only slow the burn.
  6. Flag risk: a rushed digital pivot could underperform if the at-home fitness market is already crowded, so recommend fast, cheap experiments before full commitment.

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