Tough times for entrepreneurs and startups?
September 22, 2008 by ShannonCherry
Filed under Business Plans, Funding
With the financial crisis surrounding us, it’s a bit hard to imagine what it will all mean for startups, entrepreneurs and small business owners in the US.
But there are a few things that will definitely be in the future:
1) It’s going to be harder than ever to raise capital for businesses. Loans will be few and far between. Most VCs are losing money too, so they will be conservative in their giving. Plus, I am quite sure the terms of loans and VC agreements will be tougher.
2) Potential customers will take longer to pull the trigger. People are going to be careful in their spending, since every penny is going ot count.
3) Customers are going to expect more… more services, more payment options, more bonuses to keep them happy.
What do you think? How is the financial market upheavals going to effect you?
I agree. Jeff Bussgang, a partner with Flybridge states it best. He’s “short term bearish, long term bullish”. It’s all about extending your current runway. make your cash last.