Your new business plan
As a startup, you are now, officially, on your own. You can't count on your VCs saving you or some magical offer from Yahoo or Google showing up to bail you out. Taurus has laid off Fondue. You need to rewrite — no, not your business model. Your business plan. Mahalo CEO Jason Calacanis, in his latest private email, offers this advice:
The paradox of the death spiral is that many pilots actually believe they are stabilizing their plane when they are actually tilting it. What is "The Death Spiral"? ==================== The death spiral for startups is like the condition that occurs to pilots when they fly into "weather." The "weather" right now is the massive confusion and uncertainty of the financial and consumer markets. We can now operate past 2012 even if we never make any advertising revenue, and truth be told, building advertising-based companies is my specialty (the last two, Silicon Alley Reporter and Weblogs, Inc. each broke 10m a year revenue between their third and fourth years). Perhaps we're being too conservative, but I've rarely heard of companies that went out of business because they made cuts too early, and I've heard of many who have reported the opposite.
Take notes, Taurus. That's the new story. Stick to it. Be strong. Profits are so 2013. Did you have a layoff? No? Too late. Now let's go out there and kill it again! (Photo of Jason and Toro from 2005 for Wired by Emily Shur)