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Starting A Business in A Challenging Economic Climate, Part One (Why Now?)

Starting A Business in A Challenging Economic Climate, Part One (Why Now?)

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    Starting a business during a recession seems counterintuitive, doesn’t it? If the economy isn’t doing well and people aren’t spending money, doesn’t that mean a new business is likely to fail? Actually, the answer may surprise you.

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    Fears about starting a business in this economy are common and understandable. But in this two-part series, I’m going to show you why this economic climate is a fantastic time to start a business, how you can limit your risk, and where you can get help.

    Part One: Why Now Is A Great Time To Start A Business

    History shows us that the economy may not have as much of an impact on startups as you might think. Many of the companies you know and trust were started in economic conditions much like the ones we’re experiencing today. Disney, Johnson & Johnson, and Microsoft were all started during recessions, and I think we can all agree that the economic conditions in which they were started didn’t doom them to failure. You can operate out of a sense of scarcity and fear, perpetuated by the media, or you can rely on history to show you the way.

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    Your corporate job may not be as safe as you think. So many businesses are making cutbacks these days that one thing is clear: nobody is completely safe from layoffs. You may not be privy to what’s going on behind the scenes at your corporate job or what’s happening in their books. So you may not know if your job is safe, if it’s safe “for now,” or if you’re next on the chopping block. Even if your company is trying to protect its employees, in the long run, many companies may not be able to keep everyone on. Now is the perfect time to build your “failsafe” or “backup plan” so you’re prepared if your employer can’t carry you through. Better to start now and have something in place, already growing, and if you don’t need it, you’ll have some nice extra income on the side.

    Experts don’t know what’s going to happen. Some financial experts are saying they’re already seeing signs that the economy is improving, but others caution that we could be heading into a depression and that it may be a long time before we see true prosperity in our economy again. It’s hard to imagine that this economic climate is permanent, but without a clear idea of how long this is going to go on, and without knowing for sure that your corporate job is safe, having your business up and running and gaining momentum now, even in your spare time, just makes good sense.

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    Labor and outsourcing are cheaper than ever. Because everybody’s looking for clients, products and services that you need for your business are more affordable than ever. Thus, your startup costs for virtually any business will be less expensive and you’ll find fantastic values out there.  That means you’ll be much more likely to be able to outsource mundane tasks to focus on the aspects of your business that really need you. Plus, instead of making the mistake that many new and inexperienced entrepreneurs make and trying to design your own logo and web site (almost always a mistake, in my opinion), you’ll be able to hire talented professionals at reasonable rates.

    You’ll be more invested in your own success. In an economy where everyone is flourishing, many business owners think they don’t have to work as hard. Clients are easier to come by, and if your business doesn’t succeed as quickly as you anticipate, it’s not a big deal to get a temporary job until things pick up. In contrast, in an economy like this, many business owners exhibit a much stronger work ethic, where, even if there are jobs out there, they work like crazy to make their businesses succeed as soon as possible.

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    It’s so easy to give into the fear in challenging economic times like this. It’s easy to believe that now is the time to stash your cash in an emergency account and hang in there for the long haul. But the wisest course of action just might be the opposite action, to invest in small business ownership. In the second part of this series, I’ll share what you need to know to start a business and limit your risk so you still have that emergency fund intact.

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    Susan Baroncini-Moe

    Susan Baroncini-Moe is an executive coach and business leader with over sixteen years’ experience.

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    Last Updated on October 28, 2020

    The Crucial Letter Your SMART Goal Is Missing

    The Crucial Letter Your SMART Goal Is Missing

    SMART goals are a simple, logical way to organize your goals as you set them throughout life. Not only does this technique help you identify reachable goals, but it helps break down goals into smaller and more manageable pieces.

    However, there is one crucial element (or letter) that is missing from this acronym. This missing letter can potentially make it harder for you to reach your goal – no matter how well you have broken down your goal into different pieces and action steps. However, once you understand this missing piece, you’ll be able to use it to move forward with your goals.

    What Are Smart Goals?

    If you are not familiar with the SMART goal setting technique and what the acronym means, here is a brief rundown with a simple example:

    • S = Specific — Your goal has to be specific enough (“I want to lose 4 inches off my waist”).
    • M = Measurable — You can measure your waistline every week to keep track of your progress.
    • A = Achievable — Do you think that you can do this? Or are you going too far by getting rid of yet another 4 inches? Or should you expand the goal to 5 inches; is that within reach?
    • R = Realistic — Is your lifestyle stable enough that you can commit to this goal?  Are you mentally prepared to do this? Do you have the resources you need for this goal?
    • T = Time-framed — You could want to achieve this goal within a week or within six months, but it should have a specific time frame.

    As you can see, when you break down your goals like this, they become much more manageable and concrete than just saying “I want to to be slimmer.”

    All fine and well, except that there is a crucial letter missing in this package – another letter “A.”

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    The Missing Letter

    The other letter “A” stands for accountability, and this is a great way to make sure that your defined plan is actually executed and is not left just on the talking or planning level. Even if you have crafted a masterful plan by using the SMART goal technique, it becomes useless if you don’t actually execute it. To make sure you start the execution phase, you want to throw some accountability into the mix.

    By having some external pressure on your back (in the form of accountability), you are more likely to take action on your goal steps than if you just keep the plan to yourself. Accountability is based on the fact that you want to stand behind your words and save face. When you announce your goal to the world, you realize that the world is now watching you, and you don’t want to let the world down.

    Accountability is also about facing the expectations of others. If you announce a goal or a task in public, other people are expecting you will achieve the tasks and goals you have laid out for yourself.

    Watch this video and find out how by having dependable accountability, you can reach your goal more efficiently:

    Ways to Implement the Letter “A” in Your Goal

    There are plenty of ways you can go about creating accountability. Choose which one will work to motivate you the most.

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    1. Keep It to Yourself

    I was a bit hesitant to include this, since in this scenario you are not telling others about your plans or tasks. However, for some people this might work since your conscience is your accountability partner in this situation. And you don’t want to let your conscience down.

    2. Announce It to Other People

    Your people could be your colleagues at work, your local golf club buddies, the subscribers and readers of your blog, or your Twitter followers. I would say that accountability is more effective when dealing with “offline people.” Being accountable face-to-face to someone is very effective.

    I’m in no way underestimating the power of “online people” either. If you are trying to form solid relationships with others online, you want to keep your word – even if you don’t necessarily meet the people in the same sense as in the offline world.

    3. Find an Accountability Partner

    A more intimate way of being accountable is to find an accountability partner. This could be a friend or spouse, but it needs to be someone you feel comfortable reporting to. When this route is chosen, you might decide to call your partner on a frequent basis to tell them how well you are progressing on the goal.

    4. Get on Stickk.com

    If none of the above ways work for you, it’s time to put Stickk into play.

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    Stickk.com is a website where you can announce your goal (“Commitment Contract”), and to make you even more committed to reaching that goal, there is money at stake. Money is not mandatory to get set up with Stickk, but knowing that you will lose a certain amount of money if you don’t reach your goal can give you an extra push to get stuff done.

    5. Join Mastermind Groups

    A mastermind group is a group of like-minded people gathering on a frequent basis (online or offline), trying to push each other closer to their goals. This type of accountability is very common in the business world. When you are in a mastermind group and you have set the objectives you want to achieve by the next meeting, you want to get stuff done and fulfill other’s expectations.

    Mastermind groups are a great way to improve your productivity and reach your goals with the help of others.

    6. Hire a Coach

    If you really want to get personal attention for your goals, then hiring a personal coach may be the best way to stay accountable.

    Not only are you accountable to your coach, but you also have to pay for his/her attention. This makes the coach option even more effective. You want to make sure you do everything you can to get the assignments done before the deadline you two have set. So, there is a money factor to keep you accountable as well. Since you want to quickly move forward, this option is a very effective for staying accountable with your SMART goals.

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    The Bottom Line

    Next time, set your goal using “SMARTA,” instead. Add that letter “A” to the SMART goal setting technique:

    Specific, Measurable, Achievable, Realistic, Time-framed, Accountable.

    The accountability factor of reaching your goals may be just the thing you need to make them a reality.

    More Tips on SMART Goals

    Featured photo credit: Estée Janssens via unsplash.com

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