Are you thinking about starting a new business in the current recession?
If so, then prepare yourself for the strange looks that you’ll undoubtedly get from friends, family, and colleagues.
You see most people are inherently conservative and have a traditional view of the world. Most folks are followers by nature – not leaders. They have a limited ability to “zig” when others are “zagging”. Therefore, they tend to look at the scale and scope of the current recession and just assume that it’s a terrible time to start a new business.
Don’t get me wrong — the recession is definitely painful. However, as an entrepreneur myself who started a second business this past January — I believe there’s a silver lining in the current economic cloud which, ironically, makes today a terrific time to start a new business.
Here’s 5 reasons why:
1. The social web has made it easier and less expensive to market your new business.
The web has matured to a whole new level. It’s more open and more social than ever. It offers a plethora of light weight and inexpensive options for start-ups to market themselves. From Wordpress, to Facebook pages, to Twitter, and other solutions — there’s a ton of really good tools available for FREE to get your message out there. In past recessions, when traditional media still dominated — start-ups were forced to invest hard cash in PR, newspaper ads, yellow pages, radio, etc. Today, however, with consumers spending more time online, the web has essentially leveled the playing field for start-ups by providing a variety of cost effective options to target and connect with customers and compete with established players.
2. It’s easier to find skilled people willing to work in flexible arrangements for less money.
Whether you require on-shore or off-shore resources, seasoned executive level talent or college interns, the recession means that more skilled people are looking for work. Not only are they available, but they’re willing to work in flexible contractor relationships and they cost less than you might imagine. A variety of marketplaces exist that make it simple to solicit multiple bids, compare alternatives, and find the right person for the job. Odesk, Guru and Elance are solid options for finding freelance and offshore technical talent. On a different front, Spotzer, Spot Runner, and TurnHere are efficient options for finding affordable professionals to help you create high-quality video commercials to promote your start-up online or on local TV. These are just a few examples of different places you can look for talent. Go ahead and take a peek. You’ll be amazed at the kind of talent that you can find — and how inexpensive it can be.
3. There is less competition for your customers.
No matter how you slice it the recession has taken a toll on everyone, including your prospective competitors. Weaker ones have been wiped away completely. Stronger ones have been forced to hunker down a bit. If you pick your target carefully, it’s entirely possible to step into the void with a fresh approach and win your share of customers.
4. Nothing focuses the mind like the prospect of a hanging.
Samuel Johnson said it, and I definitely believe it. The mere prospect of death causes people, and especially entrepreneurs, to become incredibly focused and dedicated to achieving their goals. Indeed, history is filled with examples of incredibly resourceful people who rally from the depths of despair to achieve great success. So as you prepare to start you’re new business in the midst of this recession, take pride in being creatively frugal and remember that death is always just around the corner.
5. Starting a business today will position you to capitalize on the inevitable recovery.
Timing is everything — and perhaps the biggest reason “now” is the time to start a business is because the economy will eventually recover. And when it does, those battle-hardened businesses who survived the tough times will be incredibly well positioned to take full advantage of the next growth cycle. Entrepreneurship is part of what makes us human. The desire to create, grow, and harvest things. Starting a business now, when others are hunkered down, is not as crazy as it seems. Learning to survive in this current environment will hone your business skills like nothing else and enable you to flourish for years to come.
