Before you have your Swan Song, perhaps you should learn that this Coronavirus isn’t so bad for business.
Last week, we spoke about the Covid-19 virus, and how it has affected the markets around the globe.
Also, should we start cancelling our flights altogether?
Many had already lamented the death of conferencing and how they would be able to network and interact when they have to wear HAZMATs all the time.
Despite that, you should choose wisely about which events you should attend.
Foreign and domestic – which is better?
Attending an event close to home is definitely a win, especially if it’s considered “a safe zone”.
It also helps in networking with the local ecosystem, which helps in the short-run more than anything.
Foreign events though both broaden your horizons as well as bring more intricate deal flow to the table.
These events should not be taken lightly and cancelling your attendance must be premeditated if there may be an opportunity which may not return.
Meeting in person – a total win
Meeting in person in times of epidemic may not be the smartest move, but it’s not the most stupid one either.
Some businesspeople prefer meeting in person.
It helps in finding out if the person in front of them is genuine.
Cementing relationships by handshakes helps more than having a call.
The reason is because of the human touch which cannot be replicated via a phone call.
Scammers in the information age usually don’t meet in person. They prefer attending online.
Having said that, it would be wise to attend events online if you are afraid of the virus.
That is because not attending and being relatively unknown may hinder your business’s overall progress.
Introverts may rejoice at the Coronavirus!
This opportunity allows them to attend events online without the peril of being judged for it.
It allows digital nomads to cement their standing as marketing agencies, as people would not meet in person.
It allows corporations which offer meeting software (and equipment) to get a larger market share.
It also helps bootstrapped startups in spending less money and making sense of not renting out an office (just yet).
Food delivery services such as Uber Eats, as well as Amazon, thrive in such an environment.
People sit at home and order food instead of going to the supermarket.
An opportunity awaits the smart startups to work conjointly with corporations to create a better e-commerce experience for everyone involved.
The Swan Song of VCs
Some VCs had already told portfolio companies that the Covid-19 Virus had been a black swan, which means that the market is too volatile for them to consider further investments.
It means that 2020 might be a year of fewer investments, or is it?
Why would a VC, which has the word “Venture” in it, decide not to venture?
It has been said before: risking money when the markets crash (somewhat, they didn’t really “crash”), may provide a negative IRR.
Still, why would businesses which operate on the risk of having 90% of their portfolio companies decide to change their business model?
Abracadabra – I’m out!
The Coronavirus is perfect for VCs!
It has been more of a blessing in disguise than anything since it allows VCs and PEs to rescind their offers without any consequences.
Should you, as a principal, consider not investing?
The answer is definitely “no”.
Because the market has already sunk, meaning it is much cheaper (and with a higher yield) to invest money right now.
It is the same as having lower interest rates: less interest, smarter move to buy with debt.
Naturally, IRR cannot be promised, but when you pay less – you risk less.
Before you decide that it’s time to go and sing your swan song, remember that opportunity is everywhere – don’t lament just yet.