

Steve Jobs on managing through the economic downturn - joao
http://money.cnn.com/galleries/2008/fortune/0803/gallery.jobsqna.fortune/15.html

======
mpk
That's a sensible position to have for an established company that has a lot
of cash in the bank, doesn't pay its engineers very much and has a long-term
view.

However, if you're established but don't have cash, have low margins and
expensive personnel, you're not in a very good position to start doing heavy
R&D.

Apple doesn't reflect the state of tech startups. Lessons learned from Jobs
should be taken into context.

If you don't have cash, get some by cutting everything you don't need. Build
up a reserve and invest in long-term projects. Preferably ones that tie into a
strategy of supplying services that other companies need but are currently
supplied by companies that are going bust. Also, be pessimistic on your
revenue projections.

And don't take random advice on forums as your guideline.

------
bayareaguy
I hate it when a perfectly reasonable article is split into 15 separate
sections you need to click through. Here's a copy you can read quickly -
<http://jottit.com/myvqn>

~~~
jharrison
I only read 15/15 and as far as I'm concerned I don't need to read the rest of
it.

There are plenty of examples of succeeding in a downturn by doing the opposite
of what everyone else does. It might take a little creativity to find
available resources but history shows that it can be well worth it.

If you can afford to do anything to get a step ahead of your competition while
there's a lull in the action, you should.

If you're selling products that will help your customers get ahead of their
competition then you might have to figure out creative ways for them to pay
you. Not everyone has this flexibility but if you can make it happen you'll
help your customer AND your own company move ahead while everyone else takes a
time-out.

------
AndrewWarner
He's going to increase funding for R&D in the downturn. I think, we as
individuals, need to keep investing in ourselves during the downturn. Build
our knowledge, reputation, connections, etc.

------
jmtame
I really admire how honest Steve Jobs is with his own products:

Take the iPhone. We had a different enclosure design for this iPhone until way
too close to the introduction to ever change it. And I came in one Monday
morning, I said, 'I just don't love this. I can't convince myself to fall in
love with this. And this is the most important product we've ever done.'

------
mynameishere
Looking at the long term chart, Apple seems to get pounded extra-hard in
recessions. No surprise, as they essentially sell luxury goods. Corporate-
wise, it hardly matters what they do now since their balance book is
(extremely) healthy, but they've got 2 years of hard times, if history is a
guide.

~~~
netcan
Even worse, a luxury product (often) in a market where purchases can be
deferred 12-18 months if necessary.

