Is there life after Corona: who gets a second chance?
It is almost certain that despite the support expected from the government, quite a few companies will go bankrupt as a result of the Corona-crisis. That could be companies that didn't thrive in the first place or were poorly managed, but it can also concern companies whose business model has been wiped out in one fell swoop or companies that started recently and have not yet had time to build up reserves.
It is not easy in the Netherlands to find financing after bankruptcy. That has to be different, sure when one Brilliant has gone bankrupt. The Institute of Brilliant Failures runs it for a reason Second Opportunities Counter. Currently inviting people/parties from the healthcare sector to nominate themselves and others for a second chance after an attempt has failed brilliantly. A new attempt can be made with the failure proceeds. The Institute for Brilliant Failures is now proposing to set up a Second Chances Fund, that invests in restarters who want to try again after a brilliant failure.
This is not only socially very defensible, but is also rationally substantiated by a report produced by the Boston Consulting Group on behalf of the European Union. It's appropriately titled: ‘Setting the Phoenix FreeSpy, looking at the economic value created by restarters. The main conclusion is that this value is on average greater than that of starters. Not surprising when you consider that the restarters have learned lessons and show perseverance.
The basic condition for this is that one has gone 'Brilliant Bankrupt', d.w.z. scores well on all five conditions: V (Vision), I (Effort), R (Risk management), A (Approach) in L (Lessons learned). It is important to further make these five conditions measurable by means of a diagnostic tool. That's what we're working on. We expect to find many examples of companies that failed as a result of this 'Black Swan'. The government and the financial sector would do well to prepare a pot of money for this '2nd Chance Investment Fund'.
