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Monday, October 27, 2008

Venture Capital in the Down Economy

This is a follow up to my previous post regarding doing business in a down economy.

I went to a meeting of the Hawaii Venture Capital Association (HVCA) last week. One of the key points made by the venture fund managers was that any business they fund during the current economic conditions must be well run. They must cut costs and operate efficiently.

Excuse me, but shouldn't any business they invest in operate efficiently and effectively, no matter the current economic conditions? Shouldn't investors or owners of any business expect it to be well run and operate as efficient and effective as possible?

Or do we tend to only worry about wasting time and money when times are tight? When business is booming, we do tend to let waste creep in. Usually unintentionally, but not always. But that's not good business. We should always examine our operations, drive out waste, and design and manage our processes so that they are efficient and effective.

Good times or bad, good business is good business.

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