My advise to startup CEO's, whatever you do, don't be an optimist. This is not the end of the beginning; this is the beginning of the beginning. Things will g

My advise to startup CEO's, whatever you do, don't be an optimist. This is not the end of the beginning; this is the beginning of the beginning. Things will get a lot tougher for a lot longer than you can ever imagine, much worse that the last one in 2000 which I fortunately survived. The timing of the $700B bailout last week is similar to the $3B inventory writedown by Cisco in Q3 of 2000. Until then, every CEO knew that things were tough but everyone thought that recovery was in sight. But when John Chambers threw in the towel, it really marked the beginning of the beginning. If you are the CEO of a startup that is not yet profitable and survives on VC money, you are screwed. If you are the CEO of a startup that has just achieved profitability, you might not be anymore. The best advise that I ignored in 2000 was "your money is your most valuable asset". Do whatever it takes to cut down on your fixed cost. Unfortunately, now is the time to reduce your headcount. Stretch your runway. This one will last at least four years, if not longer. You have no idea how hard this is going to get. I have been there. I know.