BUSINESSWEEK ONLINE : JULY 24, 2000 ISSUE
BUSINESS WEEK E.BIZ -- SPECIAL REPORT Dot-Com Survival Management Guide With investors fleeing and venture capitalists turning their backs on Net executives, many have found themselves in crisis mode. Some of the steps taken are clearly effective management. Others are downright kooky. Quelling employee jitters After ThirdAge laid off 35 people in June, this site catering to the over-55 set offered massages to raise the morale of the remaining employees. Garden.com's CEO sent employees an e-mail while he was on a trip to reassure them that his absence didn't signal anything worrisome afoot. Making the most of resources In May, LetsTalk.com, which sells cell phones and service plans, put a marketing campaign on hold to conserve its $21 million in funding. It's now trying to attract customers by beefing up services on its Web site. Watching the numbers Cooking appliance and recipe site Tavolo implemented strict budgeting procedures so the $36 million it raised in April would last longer. Now, instead of just the CFO and CEO checking on budgets daily, the entire management team gets budgets to watch for cost overruns. Getting closer to partners Good partners are important as never before. Wedding information service The Knot has put a new emphasis on working with international partners on such small details as helping its Brazilian joint venture partner come up with logos. Instead of providing financing as it would have done in the past, The Knot handles the technology and design. Dishing out options With their stocks down dramatically, CDNow and other companies are risking the ire of investors by repricing stock options for employees. CDNow dropped the strike price on options to $5.63 from as high as $39. Also, The Knot and EMusic.com have had to hand out more options at a lower price so that employees can hope to still make money. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP					RELATED ITEMS The Fight for Survival TABLE: Dot-Com Survival Management Guide CHART: Venture Capital Investments Are Tumbling...And Investors Are Leery of New Tech Companies.. Drug Doldrums Sour Notes INTERACT E-Mail to Business Week Online

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