Today, Sequoia Capital hosted a mandatory CEO All-Hands Meeting on Sand Hill Road. There were about 100 CEO's in attendance and let me tell you, the mood was somber. I'm not one to perpetuate doom and gloom or bad news, but let me underscore this for you: We are in a serious economic downturn and this is just the beginning. Immediate, decisive and swift action is required, along with frugal, day-to-day management of expenses and our business is required.

**Here are my notes from the meeting. Keep this note in your in-box and read it every day. I'm serious folks, this is for our survival.** <...>

Slide projected on the huge conference room screen as people assembled inside the conference center to take their seats: a gravestone with the inscription: RIP, Good Times. <...>

· We are in the beginning of a long cycle, what we call a "Secular Bear Market." This could be a 15 year problem. [many slides on historical charts of previous recessions, averaging 17 year cycles.] <...>

· There is significant risk to growth and your personal wealth.

Advice:

· Manage what you can control. You can't control the economy, but you can control everything else.

· Cut spending. Cut fat. Preserve Capital.

· Don't trust your models and spreadsheets. All assumptions prior to today are wrong. <...>

· A "V" shaped recovery is unlikely <...>

· This is a different animal and will take years to recover. <...>

4. Cash is king [have you gotten this message yet?] <...>

· Engineering: Since you already have a product, strongly consider reducing the number of engineers that you have. <...>

· Finance: Defer payments, what is essential? Kill cash burn. <...>

· Make your cuts
· Review all salaries
· Change sales comp
...
· Spend like it's your last dollar.

Get Real or Go Home.