I am supportive of the initial spending cuts idea. Lately, we see some technical giants such as Apple, suffering from shares prices corrections. Young entrepreneurs should have to keep their finances really tight to have cushion when the downturn starts. Costs such as extensive advertising, professional marketing services, mentors and consultancy fees are obviously good choices to start cutting expense.
Startup companies should cut back on initial spending in order to make their business model more sustainable. They often spend too much too fast and end up in a lot of trouble with not being able to repay their debts before they start to make money. Money isn't made in a day
Companies these days overspend by a very long shot. It's insane how much they will put into the company, that really is just not all that necessary. I think it would be great if companies who make tons of money would start investing in charities, or giving back to the community or their employees.
Tech start-ups like this have a high rate of failure. Only a few really make it in today's business world. The reason why most don't make it is due to inexperience and trying to mimic the business plan of a company that's big and established like Apple or IBM. If you are a new company, you need to have a business plan that mimics the business plan of Apple when they were first starting out.