everyone else is doing it...
So here are my points of advice.
These are for those of us who work in creative and consulting services - and are entrepreneurs. They are for managers and executives and founders.
In other words... they're for all of you feeling the pain of the current economic situation.
- Protect the core value of your business. Yes... you're going to have to cut costs and people are your costs but use a scalpel not an axe.
- Build up a war chest of at least 6 months' operating capital in the bank (against conservative estimates).
- Right now, money is worth more than your equity. Whenever possible, pay equity instead of cash.
- Be open-minded when it comes to M&A opportunities.
- Everybody needs to be selling - all the time. Every person in your company (designer, PM, whatever) needs to sell.
- Watch the leading indicators for all your expected revenues. You'll need at least a 60 day window in advance to make decisions. If you're seeing a shortfall - don't hesitate. You need to make decisions quickly and early.
- Over-communicate with your employees. Don’t sugarcoat things.