Innovate Arkansas' administrative coordinator, Vicki Malpass, was kind enough to highlight the main points of Josh Quittner's speech during last week's Arkansas Venture Forum.
Here are Malpass' notes, which were compiled using information provided by Quittner and her own observations:
Josh Quittner, editor-at-large for TIME, was the keynote speaker at the Arkansas Venture Forum luncheon on Nov. 19 at the Peabody in Little Rock. Quittner's speech centered on "The 12 Ways Your Startup Can Survive the Nuclear Winter." He drew from a number of reports and blog posts concerning the state of the U.S. economy and how startup companies can survive the downturn. Many of the sources listed seem to overlap, but Quittner distilled the major points.
The 12 Ways:
1. Have an "Immigrant Ethic" (Max Levchin) - Basically, now is the time to work especially hard, but also smart. You must be frugal and get rid of the "nice-to-do" things, and focus on the "must-do" things.
2. Get Cash-Flow Positive and Get There Now (Mike Moritz) Raising capital without being cash-flow positive is going to be tough - very tough.
3. Outsource As Much As Possible (John Borthwick) - "Face reality as it is, not as you wish it was. Change the mix of sales and performance-based employees. Think about what you outsource - and how you can distribute your costs. It's hard and it requires different workflow, but when it works it can change your whole business makeup."
4. Spend Smart (John Doerr) - Most of Doerr's 11 tips can be boiled down into this mantra: "Spend smart." He covers things ranging from protecting the core of your business to renegotiating contracts.
5. Get Hypercompetitive (John Borthwick) - Take the offensive; learn your client base; adjust pricing tactics if need be (don't skimp on your marketing plan but make sure your marketing plan is working); and think about your burn (think three years out, not six months).
6. Bullet-proof Your Product: Now is the time to reduce the expenses around your product (Doug Leone) - Also, the durability, reliability, safety and performance of your product are always important; but in an economic downturn these aspects become crucial to its survival.
7. Obsess About Data - (John Borthwick) - Know everything there is to know about your business: Your clients, your business scales, your revenues, your profits, your burn, your valuation, your traffic, your R & D priorities, etc. Know them and be ready to defend and prove them to possible investors.
8. Find New Business Models (Eric Upin) - Throw out all the models and spreadsheets because assumptions will probably be wrong in a "secular bear market." Use your expertise to find the model that works best with your business.
9. Always Be Aware of the Big Picture (John Borthwick) - Typically, these are the times that have driven innovation. By keeping an eye on the big picture, watching the "elephants" dance, ferreting out the trends and being aware of subtle changes, you and your company should be able to make the necessary changes in a timely fashion.
10. Over-communicate (John Doerr) - "Talk to everyone - employees, investors, partners and clients. Don't sugar coat things; communicate your resolve."
11. Work on Stuff That Matters (Tim O'Reilly) - No matter what happens with the economy, what will you be working on? What does everyone need to know about your company?
12. Have a Great Back-up Plan (Paul Sieben)














