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recession survival guide for startups |
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Written by Maciej Bajkowski
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Sunday, 11 January 2009 |
 As of late the news on the semiconductor startup from has been sort of slow. This ought to be expected given the lackluster economy which this year has inherited. When funding gets hard to obtain and revenues and profits tumble, companies large and small must find creative ways to weather the storm. Some companies resort to restructuring, also known as cost-cutting and efficiency improvements through layoffs - at least this seems to be the usual Wall Street interpretation upon which the company’s stock might rally, or at least that is what the expensive PR firm most likely promised the company. Another trick often used by companies in tough times is to divert media attention from the company’s or the industry’s real problems, by appointing a new CEO – seemingly the strategy recently chosen by Cadence. When it comes to startups however, the choices are a especially complicated. Money tends to be very limited and if no more can be obtained the game is pretty much over. Laying off staff might be an option but will most likely only prolong the end unless an economic turnaround occurs in the near-term. So what other options might be on the table? Well, Cassimir Medford over at the Red Herring, posted a Startup’s Recession Survival Guide to adress just that problem. But don’t expect to find any magic bullets, but rather more of the same, get lean, stay focused, get ready to be acquired, and hope that the recession does not last too long. The article has a few more pointers here and there, but as stated before, no magic elixir here.
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