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Now is the time: Six reasons for optimism
As seen in Silicon Valley Business Ink
by Michael Sipe

It's a fabulous time to be an entrepreneur in Silicon Valley -- perhaps the best time in a decade. Yes, today. Right now.  Let's reject the common sense advice floating around, such as: "Survive to '05. Drop prices. Do whatever it takes to hold on to customers. Cut expenses to the bone. Be patient, ride out the cycle and be there when the market comes back."

Such rust-belt guidance is fundamentally flawed. It presumes the good old days (whatever they were) will return. It is diametrically opposed to the mindset that built Silicon Valley and it is far from effective. While this thinking may seem wise and prudent, it is debilitating and leads only to resignation and a reactive, victimized mentality.

Here are six specific reasons for entrepreneurial optimism -- right now.

1. Remember. Times like this are what business is all about. Entrepreneurs solve problems for customers and make a well-deserved profit in the process. In the current climate, problems abound for the solving. People are willing to pay well for solutions that provide a high probability of a solid return.

Useful questions to consider are: "Are you trying to sell something that is "nice to have" or truly significant? What challenges do your customers face and how can you help? Do you really produce measurable benefits far in excess of what you charge?"

2. Re-evaluate. This is an excellent time to re-evaluate your business, people, processes and markets. I spent my childhood on a farm. When conditions were (rarely) good, any fool could grow crops. However, when farming conditions were (usually) poor, wise farmers would ask: "Are we farming barren soil? Are we planting the right crops? Do we need different equipment? Should we stop farming and move into town?"

Wise farmers did not keep pumping good wheat seed into parched, unproductive ground when there was a glut of wheat on the market. Perhaps what we could use today is a bit of farming wisdom. Maybe we should plant some new seed in fresh, fertile ground.

3. Reframe. For entrepreneurial companies, opportunities to gain market position are outstanding. The competitive environment has been decimated in most industries. Many of the companies that remain are shell-shocked and hunkered down "waiting out the cycle." Now is exactly the time to make sure your products and services are worth buying and then sell them with zeal. Do not wait.

4. Resources. Resources for expansion have not been this available in years. Talented people are available. Now is the perfect time to strengthen your team. In addition, real estate is plentiful and affordable.

5. Reach. We can bemoan the technology bust, but we are all direct beneficiaries of billions of dollars of investment in technology. The Internet is an entrepreneurial dream come true. We can reach across town or around the world, essentially for free. Technological tools are simpler, cheaper, plentiful and more powerful than ever. Use them to expand, produce value and improve efficiency.

6. Reason. Now is the perfect time for each of us to lead. Leaders observe, interpret, anticipate, declare, invent and shape the future. Our customers, employees, investors, communities, schools, churches and families deeply need, expect and deserve our leadership. As entrepreneurs, we are wired up and well-equipped to assume and fulfill this role. It's in times like this we do our best work. We have an opportunity and a responsibility to do so.

There are situations when hanging-back, defending a position and playing "not to lose" may make sense. This is not one of those times. Few entrepreneurial companies have a position to hold anyway, even if it is possible to "hold ground" in a volatile marketplace. Let's play to win. This is the perfect environment to step up, step out, expand, differentiate and distinguish yourself. Seize the moment.

Michael Sipe is the president of Private Equities, a mergers-and-acquisitions firm serving middle-market entrepreneurial companies in Silicon Valley.

Michael Sipe is president of Private Equities, a middle market mergers and acquisitions firm. You can reach him on:408.295.4299 or at inquiry@private-equities.com.

 

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