The thought of starting a business now might seem to many a bad idea. These are the
days of austerity, surely we need to keep our heads down, take stock of what we
have and bide our time until this is over.
The reality couldn't be further from the truth. The
best time to start a business is during a downturn. In other words, if you’re
thinking of starting a business, there couldn’t be a better time than now. So,
let me explain...
Technology makes
it easy
Years ago starting a business was a more difficult
process, because you often needed to take significant risks to get started.
Nowadays it’s much easier and more and more people are starting their business
from home with little or no financial risk. The internet has been a key driver
in this, because there are so many opportunities online. Technology has also
made it much easier to research ideas for businesses and what’s involved in
running a business, so knowledge has improved and most people feel much more
confident about taking those first steps.
People are looking
for a good deal
A startup has very few expenses and overheads, so
if you check out your competition, the chances are that you can undercut them.
Their clients or customers will be looking for deals and cheaper alternatives
that are just as good. So, it’s the perfect time to win them over. If you do a
good job, as promised, there’s no doubt that you’ll retain those clients when
the economy recovers.
Now is the time to
negotiate
If your startup depends on products from suppliers,
this is the best time to negotiate a really good deal, because vendors struggle
to sell products. When the economy is strong, vendors in the main set the rules
for their price model and it’s very hard to broker a deal.
Competitors are
vulnerable
Whether they’re large corporates looking to scale
back throughout the downturn or smaller companies that perhaps aren’t resilient
enough to see it through, your competitors are in a vulnerable state. Startups
are nimble, agile and flexible, and when you spot an opportunity you can pounce
on it.
Access to finance
Previously, to get started in a business you either
needed to self-fund or go to a bank for a traditional business loan. However,
there are now so many different schemes and incentives, as well as
crowdsourcing and independent investors that if you have a great idea – its
possible to get funding quite easily and on reasonable terms. When the economy
falters, angel investors in particular, look to move their money out of the
stock market and may be willing to fund you if your prospects are promising.
Good people are
looking for jobs
If you’re able to secure funding and looking to
grow your business quickly, you’ll probably be looking to increase your staff.
In a downturn, when redundancies are rife, highly qualified, talented and
effective people are much easier to come by.
You’ll create a
good startup in tough times
A startup created during tough times is designed to
be lean and ultra efficient. You’ll develop business habits that will help you
get ahead of the game when the market recovers, with the scope to increase
profit margins once consumers and clients are spending at full throttle again.
If you can make it work in the bad times, it should fly once the economic good
times return. Also for many people whose job is perhaps uncertain or if they
have been made redundant, it becomes a chance to put control in to their own
hands.
We
have definitely seen a rise in the number of people starting up businesses from
home, and although we still get people of all ages there seems to be a growing
number of young people (18-25) starting up a company alone. So, if you’ve
been considering starting your own business, this is the time to take the plunge.
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