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The Tech Entrepreneur's Survival Guide: How to Bootstrap Your Startup, Lead Through Tough Times, and Cash In for Success by Bernd Schoner

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CHAPTER 10

Right-Sizing

Not that I lov’d Caesar less, but that I lov’d Rome more.

—WILLIAM SHAKESPEARE (1564–1616)Julius Caesar

Startups are never quite the size they should be. First they are too small to handle the opportunities in front of them, so they hire. Then they become too large to sustain themselves, so they need to shrink. While large corporations can survive with a bloated payroll for some time, the margin of acceptable error in a small technology company is tiny. If you don’t reduce your staff or you don’t do it quickly enough, chances are you will lose the entire company, not just a subset of your employees.

Each time we were ...

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