An African proverb says The best time to plant a tree was 20 years ago. The next best time is now. The same is true about starting your own business. The good news is we are in a recession. If that sounds like an oxymoron, consider these 4 reasons to start your business during todays recession instead of waiting for better economic times.
1. The national unemployment rate is in double digits. For a lot of people, starting a new business is the perfect way to find employment for themselves. Also, it is relatively easy to find employees that have the appropriate skills and training. Employing people to work for your business can turn out to be relatively cheaper than in booming economy. Hiring now might get you employees that are determined to over perform in order to keep their jobs.
2. The economic recession will force you to figure out a way to innovate and do more with less. The resources that your startup business can afford to waste are very limited and you will have to employ a do it yourself strategy for a lot of action items on your list. For example instead of hiring a marketing agency you might develop an inexpensive social media strategy to promote your business, or instead of hiring a graphic design firm to design your logo, you could use another beneficial strategy and trade professional services. This can help you gain assets for your business without spending precious funds and helps you build a network.
3. There will be less competition as competitors are also struggling with finding capital sources. So that makes it a ideal time to buy property, equipment and all else needed to start your business as the demand for resources is lower.
4. Marketing is expensive and a capital pressured startup can hardly afford it. Novice entrepreneurs also tend to have problems with the quality of their initial product. Creating a massive marketing campaign for a product that has not passed the test of time can turn out to have a negative effect on your business. Controlling the volume of your production will give you the opportunity to dedicate time and effort to product development and soon enough you might turn with a loyal following instead with a pile of one time unhappy customers.
It might sound counterintuitive to start a business during a recession but in fact some of the most successful businesses today have launched during times of economic struggle. Among those are Dell, Microsoft, Hyatt, Burger King, Fed Ex and CNN. Those companies became successful by recognizing the tough times and filling the needs of the market as best as they can using the economic disadvantages into their advantage.