John Doerr's pragmatic action points
As a follow up to the previous post (would you stand by me) and thanks to alleyinsider and BoomTown, here are John Doerr's pragmatic action points:
- Act now
- Protect vital core of business (surgical cuts, not axe)
- Get 18 months or more of cash
- Defer unnecessary expenses (swanky new office, Microsoft Windows) and be tightwad on capex. Re-prioritize all R&D. You now can't afford to do it all.
- Negotiate. In this climate, everything is negotiable. Including existing contracts, terms.
- Everyone in company should be selling, even receptionist. (This is not just about expenses, need to grow revenue).
- Swap cash bonuses and salaries for equity.
- Pay attention to where your cash is. (Treasuries, not money markets).
- Look 90 days ahead and assess revenue. If not there, reset plan.
- Over-communicate: With employees, investors, key customers. Let them know your resolve. Don't sugarcoat the situation we're in.
E.T.