Economies are cyclical and there are ups and downs very similar to the roller coaster ride of being an entrepreneur or business owners. This post focuses on a few tips on how to stay sane and “control what you can control” during the most recent economic downturn or one like it.
My advice to founders is, don’t waste time fretting about the market, as it is completely out of your control. This drop might be a temporary correction that we quickly forget, or maybe it’s an ominous portent of things to come. Most likely, the capital markets are going to become tougher than they have been in the past few years. So what does that mean to you?
Here are some things to remember
- You’re going to be judged unfairly
- Investors will cling to safe signals in bad times
- Don’t worry, VCs share your pain
- When times are good, investors “floor it”
- When times are bad, they slam on the brakes
- The Internet has changed the world
- Prepare for bad times – My best advice is to understand that the economy is cyclical and that change is inevitable. The amplitude of the peaks and valleys may be deeper or more shallow, but they will always return.
- Look our for second order impacts