When all you have is a hammer
A recent phone call proved to be another painful exchange with a hammer toting consultant that could not see value in spending time on any effort other than raising money for his venture.
No matter that the banks are cold, he’s had no luck with presentations to non bank lenders & equity groups, and his client is on the path to extinction if an answer does not present itself soon.
After several attempts at explaining how money comes easier to deals that have the important pieces in place, I found myself throwing in the towel earlier than I used to.
I could feel how firmly the blinders were glued to this man’s head.
It was as if I was trying teach a pig to sing (wasting my time and annoying the pig).
What needed to be understood was, the reason his project was so hard to fund was that parts of it were not far enough along, safe enough, (management, etc) or it just needed to have something not currently present. Money comes to deals that have the necessary pieces in place.
Each struggling venture has one or more part/s that need to be bought, fixed, or found.
Allowing a search for a strategic partner, joint venture, or acquisition target, one gets to pick between money offered at reasonable or unreasonable terms, and another set of alternatives that may or may not be more attractive than a straight play for money.
In business as in life, having choices is better than not having choices.
Have something to add? Your own business wit?
Got a different point of view, want to play devil’s advocate, or just think we’re all wet? Post your experiences or examples.