Bharat Sangani: deciding the shutdown condition before the money runs out
Bharat Sangani's capitalization discussion included a decision made before a business reaches distress. He described setting a limit on what would be committed and what the venture had to achieve.
The limit included a condition
Sangani described deciding in advance that a venture would close if it had consumed the agreed resources without achieving the intended result. He emphasized making that decision before reaching the limit.
He compared two ways a business ends
He contrasted an organized shutdown with a forced one. The example gives the founder a point at which to stop adding personal resources. It records Sangani's approach to setting that boundary in his stage talk.
In Bharat Sangani's words
"an organized shutdown is a lot better than an unorganized forced shutdown" (Bharat Sangani, Family Office Club event talk introduced by Richard C. Wilson)
How to use this
- Write down the milestone attached to the resource limit.
- Decide who will review the condition before the limit is reached.
Questions and answers
When did Sangani say to decide the condition?
Before the business reached the spending limit.
What distinction did he draw?
An organized shutdown compared with an unplanned forced shutdown.