With the ignominious downfall of Wall Street, famous investor Ron Conway had warned the technology industry to prepare itself from the inevitability of fiscal glitch caused by the country’s economic meltdown.
In his e-mail letter addressed to high-ranking officials of his companies, Conway said that the industry should prepare contingency plan which can serve as a solution to deal with the domino effect of economic meltdown.
His contingency plan includes strategies which can minimize the resources and maximize the output. He added that this can be done by reducing the number of staff and effectively allocating resources to maximize the productivity. While his proposal of lying off workers may sound heartless, he justified this by saying that a business can not survive in this tough times if it would fail to cut its cost effectively. This means that when a company can do without a worker’s dexterity, he should be laid off.
Eight years ago, Conway had also warned the CEOs of his companies that the times of economic hardship for the technology industry may be fast approaching, advising them to employ relative plans to bear the brunt of challenging times.
According to his e-mail correspondence with his CEOs, there are seven important things business leaders should do: 1.) For those relying in funds, they should employ all known strategies to raise money as much as possible to survive the hard times, 2.) Tap any individual and industry to raise venture capital, 3.) High cash reserves can help the company to operate during financial slowdown, 4.) Be realistic and be prepared about the outcomes of various things, 5.) Look for corporate partners who can help the company to raise productivity, 6.) Never postpone raising funds or venture capital and, 7.) Understand that industries and individuals who provide venture capital to the company may demand more control.
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