I can't wait for this economy to take a dive. Yep, you heard
me. That's because my industry, venture capital, depends on it. There
is nothing that increases the number of breakthrough startups to invest
in
like a miserable economic downturn. In fact, nearly 60 percent of the
Fortune 500 companies were launched during a down market, according to
the Kauffman Foundation.
Bear with me as I explain why this makes sense and is good for you.
When everyone is flush with cash and feeling secure in their gigs,
inertia prevails; there's no reason to strike out on one's own. In good
times, top talent gets compensated accordingly; hell, everyone has a
better-than-even chance of getting a raise.
But when the market tanks, that's when bonuses freeze,
budgets shrink and futures get fuzzy. It's also when the
forward-thinking start talking treason about "what they could be" if
they weren't chained to the corporate ladder. At the bottom, ambitious
college students searching for a ladder to climb face fewer job offers
and start to consider extending their ramen days and building their own
companies from scratch. Greeting those brave enough to act on their
entrepreneurial aspirations are family and angel investors
who are likely spooked by their sinking stock portfolios and are
suddenly more open to backing a startup. And that's when guys like me
start to take notice.
But with the economy steadily humming along, my job is harder than it
was four years ago. Back then it seemed like some new idea, business
model or product emerged every week to change the world. Now? Not so
much.
I share my lament not to complain but to point out an opportunity for
you. Consider this: When your finances are stable and you feel safe,
perhaps that's the time to launch a business. There will be fewer
competitors fighting for investors and, conversely, more VCs dealing
with the entrepreneurial lull. And depending on the product or service
offered, you'll face a marketplace that feels flush and more open to
trying--and buying--something new.
Credit: Sam Hogg.
No comments:
Post a Comment