« Microsoft VC Conference - Steve Ballmer's View On The World | Main | Due Diligence Reveals All - To The VC »

October 09, 2008

In The Long Run, We Are All Dead

Every start-up board is having the same conversation these last few weeks:  how will this economic crisis affect us and what should we do in our own business?

We had our annual investor meeting this week and warned our investors that it was going to get ugly over the next year or two (surprisingly, they indicated that some of their other VC investors had sounded positively pollyanna during this annual season).  For all the reasons I described in my recent blog, "Short-Term Bear, Long-Term Bull", we remain a fan of the start-up economy in the long run.  That said, CEOs need to take swift action to make sure they survive to see the long run.  For as economist John Maynard Keynes observed, "In the long run, we are all dead."

My partner, David Aronoff, wrote a good blog outlining what CEOs should be doing to ensure survival.  TechCrunch reports a similar note that angel investor Ron Conway has sent out to his portfolio companies.  GigaOm reports that Sequoia Capital called an all-hands, emergency meeting with its portfolio CEOs to walk through a recommended plan of action.  I have received copies of emails from a few other funds alerting their CEOs with similar messages.  Take action now.  Don't dither.  Cut costs, cut projects, raise incremental capital, be proactive and plan for the worst.

If you don't, you might be watching Kenesyian economic policy being implemented from the vantage point of six feet under.

TrackBack

TrackBack URL for this entry:
https://www.typepad.com/services/trackback/6a00d83424781853ef0105356ebdf9970b

Listed below are links to weblogs that reference In The Long Run, We Are All Dead:

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

Great piece.I think the trick is to be proactive. We are changing the times instead of times are changing.Cut costs but also keep your eyes and ears open to new opportunities that an economic crisis brings with it.You fight it where you have to and use it where you can to deliver more value in whatever you do!
MenonRK
mGinger

Great piece.I think the trick is to be proactive. We are changing the times instead of times are changing.Cut costs but also keep your eyes and ears open to new opportunities that an economic crisis brings with it.You fight it where you have to and use it where you can to deliver more value in whatever you do!
MenonRK
mGinger

Very nice post and very deep though.
Recently i launched http://www.oxyshopping.com India's online shopping search engine so i would like your most valuable feedback if posible.

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been posted. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Social Media


Portfolio Companies