John Doerr, The Best VC Ever, Has Some Advice For Startups Trying To Weather The Storm

Published by on October 30, 2008

John Doerr joined Kleiner, Perkins, Caufield, and Byers in 1980, and since then, has directed venture capital funding to some of the most successful technology companies in the world including Compaq, Netscape, Symantec, Sun Microsystems, drugstore.com, Amazon.com, Intuit, and Google, as well as Friendster, Go.com and myCFO.

Pretty impressive track record, eh? Along with a number of other VCs, including the Sequoia group, John Doerr has put together 10 ways to “not lose your shirt,” in this economy.

It would heed you to take his advice.

Top 10 Tips For Entrepreneurs In This Economy

1. Act now
2. Protect vital core of business (surgical cuts, not axe)
3. Get 18 months or more of cash
4. Defer unnecessary expenses (swanky new office, Microsoft Windows) and be tightwad on capex. Re-prioritize all R&D. You now can’t afford to do it all.
5. Negotiate. In this climate, everything is negotiable. Including existing contracts, terms.
6. Everyone in company should be selling, even receptionist. (This is not just about expenses, need to grow revenue).
7. Swap cash bonuses and salaries for equity.
8. Pay attention to where your cash is. (Treasuries, not money markets).
9. Look 90 days ahead and assess revenue. If not there, reset plan.
10. Overcommunicate: With employees, investors, key customers. Let them know your resolve. Don’t sugarcoat the situation we’re in.

http://www.alleyinsider.com/2008/10/john-doerr-ten-ways-not-to-lose-your-shirt