What does the US economy and PsyFyi have in common?

By: Claire Georgeson 

I don’t normally like to comment on politics or things that sit outside of my expertise, but today I woke up in the beautiful highlights of Scotland and was immediately inundated with Trump tariff noise via the socials. Yuck! 

It’s made me reflect a little on PsyFyi and my own little journey of setting up what I would like to consider a social enterprise with a business flare. SeaQ is a great product (if you don’t believe me try it out and prove me wrong 😊). 

I see businesses being run in two ways. Either as a faucet for the long term; characterised by modest value generation, slow growth, and shy business strategy. The other is an accelerated business, either by necessity (investment money with a looming payback deadline) or because the business model dictates rapid investment to build and create a product with rapid growth which eventually sees value flowing into various stakeholders' pockets. 

They both have a place in this high-paced world. I am personally unsure if the latter is the appropriate model in shipping given its propensity for caution but I am also (running a business that comes with cost) very aware that to invest in this industry you need cash. Sometimes a lot of it. Where do you get cash from these days if it isn’t private equity? (if you know, please let me know!) 

So back to my original rumination of what is now happening in the US and across governments in general (and then we’ll see if this all ties together and my brain hasn’t been scrambled by the Scottish sun!). The US have made a massive pivot away from slow and cautious and has gone long on bold and ambitious. Quite similar to a company when a new CEO comes in and makes a strategic pivot. The US has moved into accelerated growth and the US economy is the sole shareholder. 

Coming back to PsyFyi (told you I’d get there). These gargantuan leaps of strategy are something I can appreciate. If something isn’t working, you need to be able to move quickly to change it otherwise you’ll sink. But with these big bold moves also comes a cost, and it’s often your values, or the values of the company. 

If you sit firmly in the slow and sustainable growth profile then a rapid change into debt finance will alter your business model. It puts pressure on your team, forces the organisation to chase contracts that might not be optimal, and can even alter your culture. But, it opens up cash (but remember it’s not equity) and it needs to be spent (but remember it’s not profit), so use it wisely because it’ll be repaid with interest. 

For us at PsyFyi we have focused on value generation sustainably meaning we generate value by selling our services. But I have huge admiration for those who have gone down the PE route. Startups are valuable contributors in maritime; we’re the idiots who take the risk of developing products and services that require huge investment of time and money whilst bearing the risk that they might not work. And when it does work we have the right to enjoy the spoils. 

And as for the US; who knows! I’m not an economist, I’m just the idiot with the start-up!