At Some Point, The Monthly Revenue Level Has to Change to Match The Bookings (New Orders) Level!! — Law #24

In a startup at some point in time the investment funds will end and the cash will only come from revenue. If the revenue is not covered by new orders, adjustments must be considered.

Since bookings precede revenue, when bookings run less to cover planned revenue for an extended period, it is inevitable that changes will need to be made. It is dangerous to hold on to people and expense levels to match planned revenue levels when the necessary orders are happening.

The organization must accept the need to be smaller and restructure itself accordingly.

Managements can find reasons to delay the inevitable, but the sooner adjustments are made the better.