Instead, we all have to think about offering the maximum value to our customers. If the customer benefits, we all benefit in the long term. Nobody can sit in their bubble safely, because it will be prodded at profusely, for some time to come.

Fair enough we cannot blame the VC’s. We cannot blame the Banks, nor the Government(s). We just have to bare the brunt and innovate. Difficult when there is no money, but apparently the best startups are those that rise through a recession. Makes sense when being down and out triggers creativity…

If you believe in your product, have customers that validate your plan, and that represent your mass markets – then the lights are still green if you want them to be. If you are scared, then improve your plans, get a job, or even better blow your savings in McDonalds or Vegas with Jen.

Ps @ Jen – Fast Food Chains will not revive the economy (or your health), nor will Vegas, but passion and innovation just might, right?

But consider this: If every company AND each of us individually conserved money, the economy will for-sure continue to go down in the dumps and we all would be jobless. When that happens we’re going to be blaming ourselves for telling everyone to conserve.

I have to agree that companies and startups have to somewhat cut-down on costs to survive … but the rest of us in our personal lives have to go out there and spend money on stuff (e.g. Vegas, new car, clothes, fast food, etc.) to get this economy going again.

So who wants to go to Vegas? =)

@ MA – While VC’s are certainly not to blame for the downturn they do need to take some responsibility for contributing to it’s future impact. Investing in a company that doesn’t have a plan for generating revenue– or maybe i should say– investing in MULTIPLE companies without a plan, in my opinion, is just plain irresponsible.

Furthermore, this type of funding trend has served only to breed a type of entrepreneur who focuses on the wrong components in building his/her organization. And now as a result, is sadly breeding an organization that is focused only on the “Cash is King” mantra being echoed in the presentations and meetings around the startup community.

In my experience, the majority of the smart and talented business people I know already understand that yes, Cash IS King. But those same people also know that NOTHING significant happens in business until a sale is made.

This past week we have seen VC after VC loudly express financial prudence to their portfolios. But i have to wonder, why there wasn’t this much vocalization about developing a plan for revenue? And if there was, why wasn’t it as headline prominent as we are now seeing with current landscape? Was there any doubt inside these firms that eventually a business without a model for sales wouldn’t end up destined for the dead-pool?

At what point do we hold the free-spending VC’s of the world accountable for contributing to technologies share of mass layoffs, unpaid debts and increase of vacant offices as we move further into this cycle? At some point there has to a be a logical realization that while these risk taker VC’s may not have “caused” any of the immediate economic issues we see — they sure as shit will be a part of it’s end results.

So yea Mike, you may be able to technically say that these arguments are irrational in a cause scenario (and i would agree in some respects). But i don’t think you can deny that the rather large elephant in the room, that no one wants to address, is the misguided priorities behind many of these investments.

Certainly we all make mistakes and VC’s are no different. But as Einstein once said;

” The definition of insanity is doing the same things over and over while expecting different results.”

Maybe this should be the new slide (right before the Get Real or Go Home statement) in their presentations.

Cheers,
ak

VC encouraged companies to burn money to hot up the market. When the market is cooling down, getting cold and even freezing, companies should get themselves warm only enough to survive.

VC was right encouraging burning money, and is correct pushing companies preserving money.

You simple can not beat the climate.

Telling a startup to be frugal, means please don’t all come back right away asking for more money.

http://downturn...s.blogspot.com/

Cheers, E

http://www.techNmore.com

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