I was just reading John Doerr 10 points advise on how to save a start up and while I agree with many of his recommendations I saw a very important point missing. While start ups that are near break even should definitely be saved, there are many start ups that should simply not go on. Let´s face it, a lot of bad ideas were financed in the last 3 years. We were in the second bubble. And now that hugely profitable companies like Apple, Google, Dell and Nokia down over 50% why should money losing start ups with weak advertising models not close down and return whatever money they have left to investors?
The first bubble was about trying and failing to be like Amazon and the second bubble was about trying and failing to be like Google. If you are running a start up, even if you have a lot of cash left, and you look at yourself in the mirror, and you cannot possibly break even in 09 my advise is that you cut the agony and close shop. Even for your employees it´s just better to take a break and find a job in a healthy company.
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