I hear all the time people saying this is the worst time to start a business. I couldn’t disagree more. Sure, there’s not a great time to start a business waiting for a perfect chance, but considering the mouth-watering opportunities the current recession is serving up, this feels like a pretty good time. So it’s time to launch the business idea into a reality and start thinking like a business owner.
The trouble with recessions is they hurt. Businesses close and people lose jobs. Wealth is destroyed. Painful as they may be, they give hope, death of a business cycle, and herald a renewal. They clear out old ideas and old businesses and give way to businesses that really understand the customer, that are agile, and that are laser-focused on improving client experience.
This recession is not over yet, but I see its ending.
As economies emerge from the deep freeze, factories are buzzing, banks are starting to lend more in select areas, and consumers have resumed their spending. This naturally creates opportunities and momentum that businesses can work with.
So, if you are the one with ideas popping your head, wondering if this is the best time to get started, read on.
Customers Need Innovation Right Now
The first step is innovation. It’s no secret that business success lies in innovation. During times of downturn, businesses conserve cash and tend not to part with large amounts on innovation. And guess what? That increases a gap between customer needs and what solutions are on offer.
That’s just enough space, I’ve discovered, for a disruptive idea or a business—one that’s really truly amazing—to work its way in sneakily and blow the competition clean out of the park.
Think of it this way: some of the most well-known businesses started either during or immediately after a recession. IBM, Microsoft, FedEx. More recently, the whole concept of Uber—the taxi business turned on its head—was born during the very worst times of the 2008 financial crisis.
Low interest rates
Banks and other financial institutions are lowering interest rates simultaneously as economic activity contracts and consumers reduce expenditures; hence, it has become easy for entrepreneurship to raise the necessary capital and funds. Very good business research and a very compelling business plan could really mean the start of something new and beautiful.
Speaking purely from a funding perspective, there couldn’t be a better time for getting a business started.
Elite talent availability
Lastly, employees are a critical resource for any business in its process of growth and creation of value. For anyone who has been in business, it is a known fact that the hardest thing to do has always been finding and consistently holding onto the right people. In other words, it’s a war for talent and there aren’t enough good people to go around.
Unless when you are in a downturn. Ass businesses close and employees lose jobs, not only are there more high-quality workers looking for work, but there are fewer employers actively recruiting.
My point: this is the perfect time if you want to build that dream team.
You might not have to start from scratch
Most of the entrepreneurs and founders I’ve worked with would rather start a new business. That said, one of the pluses of starting up in a recession is the possibility of buying a business or acquiring a lease or patent at fire sale prices.
Finally, a recession is a great time to stress-test your business plan and check your assumptions. [In order] to map out the level of support you have from people and institutions before you stretch out to the journey of being an entrepreneur. Bon Voyage!
