Hacker Bits, April 2016
HACKER BITS is the monthly magazine that gives you the hottest technology and startup stories crowdsources by the readers of Hacker News. We select from the top voted stories for you and publish them in an easy-to-read magazine format. Get HACKER BITS delivered to your inbox every month! For more, visit http://hackerbits.com.
HACKER BITS is the monthly magazine that gives you the hottest technology and startup stories crowdsources by the readers of Hacker News. We select from the top voted stories for you and publish them in an easy-to-read magazine format.
Get HACKER BITS delivered to your inbox every month! For more, visit http://hackerbits.com.
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number of those in our portfolio)<br />
where this is simply not<br />
possible. But for the vast majority<br />
of startups, this should be<br />
possible.<br />
So, for those of you in the<br />
latter group, I want you to<br />
sharpen your spreadsheet, right<br />
now, and see if, by any hugely<br />
painful series of actions, you<br />
could actually be a company<br />
that makes money. ASAP. Or<br />
at least before you run out of<br />
money. Because that’s the only<br />
way I know to control your own<br />
destiny. You don’t have to act<br />
on it (although I would), but at<br />
least you will know if you have a<br />
choice.<br />
And if you absolutely, positively,<br />
cannot get there without<br />
more capital? Then you need<br />
to…<br />
Understand whether<br />
your current<br />
investors are going<br />
to get you there<br />
Guess who else cares about<br />
whether you live or die? Yep,<br />
your current investors. Another<br />
duh. That’s why they are your<br />
best source of ‘get me to cash<br />
flow positive’ financing. And<br />
yet, even though we all know<br />
this, why is it we don’t actually<br />
(1) create the plan that gets us<br />
to cash flow positive ASAP, and<br />
then (2) go to our backers and<br />
get their commitment that they<br />
will see us through (or know<br />
that they won’t, because if they<br />
won’t, the sooner we know that,<br />
the sooner we can go out and do<br />
something about this.) I know<br />
many VCs hate to be put on<br />
the spot about this, but I think<br />
entrepreneurs have the right to<br />
ask, and to know.<br />
Stop worrying about<br />
morale<br />
Yes, you heard me right. I can’t<br />
tell you how many board meetings<br />
I’ve been in where the CEO<br />
is anguished over the impacts<br />
on morale that cost cutting or<br />
layoffs will bring about.<br />
You know what hurts morale<br />
even more than cost-cutting and<br />
layoffs? Going out of business.<br />
I was at a conference once<br />
where someone asked Billy<br />
Beane how he created great<br />
morale at the A’s. His answer?<br />
“I win. When we win, morale is<br />
good. When we lose, morale is<br />
bad.”<br />
Your employees are smart.<br />
They know we are in uncertain<br />
times. They see the stress on<br />
your face. They worry about<br />
their jobs. What do they want<br />
to see most? A decisive plan for<br />
survival, that’s what — even if<br />
some of them have to go. Trust<br />
me, a clear plan is a real morale<br />
turn-on.<br />
Cut more than you<br />
think is needed<br />
Yes, this is simple, but not easy.<br />
It is so easy to justify why you<br />
want to lay off fewer people.<br />
However, when you do, by and<br />
large, you’ll be laying even more<br />
off later. Why we humans seem<br />
to prefer death by a thousand<br />
cuts is a mystery to me. Don’t.<br />
It’s easier on everyone if you<br />
cut deeper and then give people<br />
clarity about the stability of the<br />
remaining bunch.<br />
In order to have a bright long-term<br />
future, we need to have a series of<br />
survivable short term futures.<br />
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