How Nassim Nicholas Taleb Saved My Business
My company survived the Covid19 crisis thanks to two valuable advice from Incerto books.
It is not an overstatement to say that I could go bankrupt — like many of my competitors — in this crisis.
Just over 1 year ago, I decided to expand my business — a touristic hostel in Warsaw, Poland — and needed additional resources.
Loans are relatively cheap in Poland. Even young and high-risk companies like mine find rates near 7% per year. I considered for some time taking a loan to finance the expansion.
After some reevaluation, instead of taking any loan, I preferred to bring new partners which would own a considerable portion of the business, although I would still be the main shareholder.
More than once colleagues and family asked me if instead of bringing in new shareholders, would not be better to simply take a loan since the rates were attractive. They even listed the benefits of favouring banks instead of additional business partners:
- The peace of mind of not risking other people money.
- No need to explain to anyone about my decisions, or company results.
- Reduced legal expenses.
