Startup Funding Espresso -- Normalcy Bias
Normalcy Bias Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The normalcy bias is defined by Wikipedia as the refusal to plan for, or react to, a disaster that has never happened before. First-time startups suffer from the normalcy bias as they have limited experience with what can happen to startups over time. Founders with previous experience tend to prepare better for the unexpected as they have encountered it before.\xa0\xa0 To overcome normalcy bias consider the following: Plan for all potential contingencies such as\xa0 What to do if revenue goes in half. What to do if revenue goes up 4X in one year. What if your systems are hacked? Know your financial numbers and how they interact, particularly what costs are fixed and variable. Write out your contingency plans and add to them as you hear about challenges other companies face.\xa0 Explore what you don\u2019t know. Reach out to experienced founders to explore what you don\u2019t know you don\u2019t know. There\u2019s no way to prepare for every possibility but you can focus on those events that are probabilities. \xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let\u2019s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0\xa0 For Feedback please contact info@tencapital.group\xa0\xa0\xa0 Please , share, and leave a review. Music courtesy of .