Reflect, pivot and beware of Shysters
I spoke to an investor yesterday who told me that the slew of smart deals she is seeing with incredible teams is inspiring. Entrepreneurs who are reflecting on their ideas, their business models and thinking about the future. Even better is that the amount of money they want to raise including the valuations that are what they should be, aka what they should have always been.
There are other companies that find themselves with plenty of capital in the bank but a business that makes zero sense for the post-coronavirus world that we are going to live in. They are laying off a big portion of their team, locking down on how the business can evolve and then will eventually put their best foot forward with something else that hopefully shifts into the new reality, as my friend called it, PC (post coronavirus).
Then we are seeing the shysters. Beware of the shysters. It is hard not to be heads down building your business and doing anything you can to get it off the ground to the next level. That’s what entrepreneurs do.
When things go bad the lowest of the low come out everywhere. There are investors out there who will come in and want to own a big piece of your company because they know it is your only choice.
Don’t do it. Look at yourself in the mirror and have a reality check. If you just started your business and have yet to raise a dime, ask yourself does this business make as much sense now as it is did two months ago? Do I have the stamina to wade through months or longer until finding the right investor? Will people even be investing in this type of business? Can I afford to continue when I am not getting any interest except from shysters that I do not even like?
Put it this way, if you are working on a new gluten-free granola bar, you might want to put it on the back burner for quite a while.
I have seen shysters come in and trust me it is not a good look.