It's been all over the blogosphere this morning (GigaOm, Om again, Bear, Alley): Sequoia Capital is worried. They have given advice to all their portfolio companies. Here's some of it:
- The Good Times are Over!
- Cut spending. Cut fat. Preserve capital.
- Focus on quality.
- Reduce risk.
- Make sure you have one year's worth of cash.
- If you have a product, reduce expenses around it and boost sales. If the product is ready, cut the number of engineers.
- Be brutal when it comes to marketing -- anything that isn't working, cut it.
- Don't burn through your cash, for cash is king.
- Cut base salaries on sales people and leverage them with upside.
- Most importantly, be true to yourself.
It means that you have to be lean and focused to get through the next 2 years. Get started now!
1 comment:
I hate to say it... but "no shit". Doesn't take a genius to see that the market is tanking, and that easy capital is going to be hard to come by.
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