Phone rings. “I fucked up” he says.

[My batphone rings occasionally. It is awesome.]

“I fucked up. We are out of cash. Not much runway left. I gotta get our guys to put in more cash asap.”

Now this can be a long conversation. In the event it was 30 min. Here is what we agreed as the To Do list:

#1 Cut your payroll. There are options for this. One is fire some people RIGHT NOW. Don’t make it the last resort. Do it now. Another is go talk to them. Say “hey I need to cut costs yesterday and that means us. Can you go to zero or near it? Email me back tomorrow. I’ll pay you back in options right away.”

#2 Cut other costs. Stop paying bills. Go late on everything. Cancel everything.

#3 Get revenue. Take every possible maybe you are nursing and make it a yes and say yes and get it prepaid and do the work NOW. Ignore ideas like “distraction” or “we don’t have a product”. Fire people who say that.

#4 Shake loose any old money leads. Add on to your round now with folks you put on hold prior. Open a tranche on Angel List.

#5 Go to your core group and get some dosh to set up the next fundraising better. This is called a bridge. Not a gap.

#6 Raise from folks you haven’t engaged deeply before. These are the “new” names and might add on or set up the new round.

The outcome, not very long after, “Thank you. I am getting your tattoo.”