I am sure that I am not the first one to coin this word, but I offer it up anyway: Coviety is the inability to make decisions due to the uncertainty of Covid-19. I want to discuss Coviety in the sphere of entrepreneurs.
Let’s be clear: if you have a business that is down 60 or 70% YTD, Coviety is not your issue. You are fighting for survival. For those with companies that are flat or up, many are struggling with decisions about what to do next.
I spent about 45 minutes coaching an entrepreneur yesterday who pivoted his business in response to Covid-19, and his top line is up 2x. That’s excellent news. And yet when I pushed him on investing in the future, he is paralyzed by concerns around Covid-19. He is afraid to take on debt today or make investments that he knows he should because of understandable anxiety about what’s around the corner. Perhaps this is similar to the dilemma I wrote about earlier in the week about upgrading my office.
We need to start talking about Coviety and figuring out how to deal with it. The truth is that if entrepreneurs aren’t able to overcome this anxiety, our economy won’t recover, and we won't add the jobs we need. If policymakers can get out of their way, they can help with creating liquidity tools and incentives. But instead of relying on them, we can also support each other and push ourselves through these tough decisions.