29 October 2008

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.

  1. 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.
  2. Build up a war chest of at least 6 months' operating capital in the bank (against conservative estimates).
  3. Right now, money is worth more than your equity. Whenever possible, pay equity instead of cash.
  4. Be open-minded when it comes to M&A opportunities.
  5. Everybody needs to be selling - all the time. Every person in your company (designer, PM, whatever) needs to sell.
  6. 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.
  7. Over-communicate with your employees. Don’t sugarcoat things.
Good luck to all.