Thursday, October 30, 2008

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:

  1. Act now
  2. Protect vital core of business (surgical cuts, not axe)
  3. Get 18 months or more of cash
  4. 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.
  5. Negotiate. In this climate, everything is negotiable. Including existing contracts, terms.
  6. Everyone in company should be selling, even receptionist. (This is not just about expenses, need to grow revenue).
  7. Swap cash bonuses and salaries for equity.
  8. Pay attention to where your cash is. (Treasuries, not money markets).
  9. Look 90 days ahead and assess revenue. If not there, reset plan.
  10. Over-communicate: With employees, investors, key customers. Let them know your resolve. Don't sugarcoat the situation we're in.


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