Every crisis has it’s upside

Maybe you’ve read that investors like Warren Buffett became successful by seeing opportunity where others saw crisis. Well, it’s true — and it’s also just a tiny part of the story. Because the fact is, every crisis has its upsides, and you don’t have to be a financial wizard to take advantage of them.

The most fundamental thing to remember about a crisis is that it always makes something easier to obtain. Stocks are cheaper after they tank, talent is more available, there’s less competition for investment, etc. It’s not just the bad fortune of those affected by the crisis — everyone tends to get more risk-averse, and makes for a buyer’s market.

Especially if you’re an entrepreneur or part of an early-stage business, you should always be looking for the opportunities in any crisis. The SVB fiasco, for example, left a lot of companies reeling. That’s undoubtedly a crisis, but it also means:
•Valuations are down, so it’s a great time to seek out new mergers and acquisitions.
•A lot of great people are out of work, so it’s a great time to hire.
•Plenty of vendors have lost customers, so it’s a great time to drive harder bargains.

And if you’re looking for investment, there are plenty of funds that suddenly find themselves with piles of cash and nowhere to put them. For a company at the right scale, with the numbers to show they’re a safe bet, it’s a great time to go knocking.

Succeeding in entrepreneurship is and always has been a matter of timing (among lots of other things). And a big part of that is seeing each crisis for what it is: a brief period of time when everything’s changing, and opportunities are lying all around.

Many ideas in this post were first discussed in the Neverland entrepreneurial community. Join us there!