⌄ Scroll down to continue ⌄

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

⌄ Scroll down to continue ⌄
Starting A Business in A Challenging Economic Climate, Part One (Why Now?)

clock
    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.

    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.

    ⌄ Scroll down to continue reading article ⌄

    ⌄ Scroll down to continue reading article ⌄

    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.

    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.

    ⌄ Scroll down to continue reading article ⌄

    ⌄ Scroll down to continue reading article ⌄

    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.

    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.

    ⌄ Scroll down to continue reading article ⌄
    ⌄ Scroll down to continue reading article ⌄

    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.

    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.

    ⌄ Scroll down to continue reading article ⌄
    ⌄ Scroll down to continue reading article ⌄

    More by this author

    Susan Baroncini-Moe

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

    How to Find Your Entrepreneurial Passion and Purpose
    How to Find Your Entrepreneurial Passion and Purpose
    How to Stay Motivated and On-Track When You’re Struggling
    How to Stay Motivated and On-Track When You’re Struggling
    How to Hire A Web Design Firm
    Are You Having A Scarcity Conversation?
    5 Topics To Address When Talking With Your Partner About Starting A Business

    Trending in Work

    1 101 Incredible Insights On Life And Work 2 12 Effective Ways To Motivate Employees 3 How Connecting Different Learning Styles Leads to Career Success 4 How to Use Visual Learning to Work More Effectively 5 How To Hustle: 10 Habits Of Highly Successful Hustlers

    Read Next

    Advertising
    Advertising

    Explore the Full Life Framework

    Advertising
    Advertising