- Act now, act with speed.
- Protect the vital core of the business. Use a scalpel to make strategic cuts.
- Get 18 months or more of cash (runway) in the business against a conservative forecast.
- Defer all facilities expansions, capital expenditures. Use Google Apps. Reprioritize & rerationalize all R&D. Defer.
- Negotiate. Everything is negotiable in this climate.
- Everybody should be selling. Selling is an honorable profession. Everyone from the receptionist to engineers is selling. Not just about expenses, about increasing revenue.
- Offer equity instead of cash. Voluntary salary reduction program.
- Pay attention to where your cash is. All cash in most secure possible instruments.
- Make sure for planned revenues you have "leading indicators" to know if you will hit it.
- Over-communicate with employees, investors, customers. Don't sugar coat.
And even for those employees who can't afford to take much reduction, it's sobering to go through the exercise of deciding if they believe in the company enough to put their own money into it. At IMVU we strongly believed that everyone in the company had to be involved in selling. There's no better way to learn what customers want (or hate!). And it's hard to know if you're truly succeeding without a focus on revenue.
The Entire Video of John Doerr Giving 10 Tips for Start-ups to Avoid the Econalypse