Biology of Business

Quick Hibernation Self-Assessment

TL;DR

8 YES = viable hibernation. 4 or fewer = dying slowly. 10-question metabolic triage like ground squirrels assessing conditions before 9-month shutdown.

By Alex Denne

Eight YES answers mean you can hibernate. Four or fewer mean you're just dying slowly—hibernation is denial with extra steps. What is a hibernation self-assessment? It's metabolic triage: the quick diagnostic that determines whether your company should enter dormancy or pursue other options. Arctic ground squirrels don't hibernate randomly. Their bodies assess fat reserves, den temperature, and seasonal timing before committing to an up-to-9-month shutdown. Companies that skip this screening die 3x more frequently than those that assess first—per 2024 data, startup failures rose 25.6% year-over-year, with underprepared cost-cutting being a leading cause. This 10-question checklist applies the same logic to business dormancy decisions. A company can cut burn rate by 60% and survive 18+ months of market winter, but only if conditions align. Like the squirrel that hibernates in a compromised den, a company entering dormancy with weak reserves or permanent market shifts will simply die more expensively. The framework screens for fatal flaws: Is scarcity temporary? Do reserves cover 3x estimated costs? Can you retain 75% of critical talent? WeWork tried hibernation in 2023—cutting staff, closing locations, reducing burn—but the market shift was permanent, not cyclical. They filed Chapter 11 within months. The critical gate question: Is this a cyclical downturn or permanent market shift? If permanent, don't hibernate. For full analysis, the Hibernation Decision Framework provides detailed scorecards and emergence criteria.

When to Use Quick Hibernation Self-Assessment

Use as first-pass filter before investing time in full Hibernation Decision Framework. Use when crisis hits and quick assessment is needed.

How to Apply

1

Answer 10 Yes/No Questions

Quick assessment across all hibernation viability dimensions.

Questions to Ask

  • Is the scarcity temporary and predictable (not permanent market shift)?
  • Do you have reserves for 3x your calculated hibernation + restart costs?
  • Can you cut monthly burn rate by 60%+ without destroying core capabilities?
  • Will your customers wait for you (low churn risk during dormancy)?
  • Can you retain 75%+ of critical employees during hibernation?
  • Is your product/service still relevant after the downturn ends?
  • Are competitors also struggling (market-wide, not just your company)?
  • Can you estimate hibernation duration within +/- 30%?
  • Do you have clear emergence criteria (quantitative triggers)?
  • Is hibernation better than pivoting or operating at a loss?

Outputs

  • Count of YES answers (0-10)
  • Initial recommendation

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