Economic cycle

One thing to realize is that every start up is in the same economic cycle that everyone else is. We are seeing stories of biotech shut downs or the possibility that they will run out of cash soon. When that happens, then the idea is some larger or stronger company comes and swoops up the remains.

This might still happen. But the entrepreneur and investors will see little or none of that money. Any/every note holder will get their cash first. And there usually is not enough left over for anyone else.

As stories of black Friday hit the media, and articles on layaway become popular, we see the mood of the consumer. The problem for most startups is these consumers are the eventual source of money for commerce.

Even government financing is dependent upon taxes. And quite a bit of taxes are raised in the exchange of goods.

There is a lot of uncertainty out there right now. Cash is king. If you can write a check, then you can dictate your own terms. The issue for startups is, if someone has the cash to invest today, that person can wait. A good investor can and should wait right now. There is np hurry to make an investment. Write the check only when you at sure.

For the entrepreneur, this is going to be a difficult time.