by Alex Roldan
If you have considered going into business for yourself, there is no time like the present when the economy is rough. You might be wondering if this suggestion comes from a sane man, or just a product of garbled view of somebody who is still tipsy from a long revelry.
Come to think of it, most of the biggest companies in the world were launched when the world economy was in recession? In fact, the advantages of starting up in a downward economic climate are significant. You can easily read shifts in consumer priorities, the cost of services and products that your company need are near to the ground, that even a high unemployment rate is an opportunity for you to hire cheap but high-quality employees! The reality is that more than 10% of us are unemployed anyway, and spending time developing good business idea makes far more sense than in any other time. Startups in a down economy tend to have good track record – as this offers significant opportunities to go out on your own.
For years now, consumers’ attitude toward spending has changed. Finding a good value becomes more of a priority. Whatever your business idea, a good planning will reveal so many ways to offer than your existing competitors while still turning a good profit. If you see existing businesses that struggle and closed because the economy is not very accommodating, this is because they failed to plan ahead. This puts emphasis to have appropriate tools in place to identify threats and mitigate damage. If you are bent on using this time as an opportunity for you, a well-planned startup will instinctively tell you to be lean, organize an efficient machine that is poised to grab up the market as your competitors scramble to survive.
When money is tight, consumers tend to change its priorities. This shift opens the door to numerous business ideas and niches that are not easy to launch than when the economy is good. Starting in this condition helps you establish your customer base, thus it would not be difficult to strengthen your position once the economy improves.
The argument that startups suffer in a bad economy because they are not able to charge enough for the products or services, may have some weight, but not totally correct. Remember the situation can work wonders for you. In conditions such as this, it is easy to find great deals from suppliers – everyone’s sales are down, so most suppliers offer better terms and incentives. And with high unemployment rate, it is far easier to find a skilled professional at an affordable price. Those struggling to find work would just be too happy to join up with a venture because of its potentials.
Startup in a down economy is also cost effective. The situation will push everyone in your business to be more creative, and would easily adopt cost-effective methods of dealing with overhead and drive for more sales. A good organizational culture would develop, better financial controls would result, and a culture of no waste makes it easier to plan ahead for growth, if necessary, to survive.
This is the right time to start. Forget about the metal rabbit that they say would influence the outcome of your effort. Stay focused. Take time to thoroughly plan your idea by setting the road map of your venture. Identify the best options for every aspect and begin putting the pieces in place for your final launch. Do not expect miracles to happen as every business takes time to build profitability. Starting now would help you prepare for explosive growth when the economy recovers.
For comments, e-mail to: roldanalex@yahoo.com
