In tough times, operating in a non revenue generating business gets difficult. All your business may even dry up.
It doesn’t mean these activites aren’t important, it’s more a reflection of human behaviour. Unless the link of the activity to the transaction is clear – it will get pulled. This is true for consulting, marketing budgets or even your job. So the question we then must ask is this – how close are we to where money changes hands? Are we close to the transaction or in the backroom somewhere?
The further say we are from the money – the greater redundency exposure we have, in business and employment. Closeness to money is why many real estate agents who are often intellectual dodo’s still make big dollars. I’m sure you can think other examples too.
If you want to be an indispensable business partner in tough times, make sure you are close to the money.
Steve – founder rentoid.com
So the credit crunch is here. This is great news for startups. Great news because the pretenders leave the playing field and reduces the number of players in the game. They often provide flimsy excuses to themselves and us saying things like ‘It’s not a good time to spread new ideas…’
So we need to think about this:
How to win?
- How do we win when a lot of money is being locked away from SME’s?
- How do we win by investing our available funds frugally?
- How do we win by extracting the maximum value from suppliers in a contractionary market place?
In short, how do we extract more value as a ‘bootstrapping startup’ while the VC funded few fall over… scamble for more cash – and run around trying to ‘monetize’ quickly. How can we turn the fact we know how to operate on a tight budget into our advantage?
Now is the best time yet for boostrappers. Now is the time when real value investors, real value extractors and real value providers win.