Anyone who hasn’t been in a coma through 2020 knows that the world has spun out of control and the economy is in rough shape. Perhaps at no other time in history have things looked less certain for businesses.
So, if you’ve been nursing a new business idea for a while now, and you’ve been thinking about pulling the trigger, is it really a good time to jump in with both feet with the economy in turmoil?
Well, you might be surprised to discover that the answer could very well be a yes. And the reasons may be more logical than you’d think.
The most important factor to consider when starting a business at any time is whether or not there’s a market for your product or service. And, while the pandemic, or any other economic disruption may change the demand, the question remains the same. If you can say with certainty that there is a demand for your product or service now, during the pandemic, then why wouldn’t you start your business and take advantage of that market? In reality, if the demand exists in poor economic times, there’s a good chance that demand will grow as the economy improves. And that’s a solid foundation for future growth!
In any case, there is no such thing as ‘certain times’ when it comes to starting a business. There will always be a risk of failure.
It’s a surprising fact that there are some real benefits to starting a business in hard times such as these. Here are four of them for you to consider.
Benefits of Starting a Business in Uncertain Times
1. Recessions and economic problems have a bigger effect on large companies and existing businesses (your potential competitors) than they do on start-ups. You have the advantage of structuring your operation around current and existing conditions. This opens up opportunities to create a beachhead. Those other businesses are busy shoring up their operations and trying to survive. That means they’re not expanding, and not pressuring you.
2. Potential customers, whether private individuals or businesses, are more open to changing — finding new service providers in uncertain times. There are a couple of reasons for this. On one hand, they may be looking to save money. On the other hand, people might just be looking for something new and exciting to get their minds off of the stressors of the current environment. In either case, that represents a good opportunity for a new business to find new clients.
3. There’s more room for growth. Just like when you buy stock at a low price and watch the value grow over time, you’re jumping into the business economy at a low point. The solid decisions you make right now can set you up for growth as the economy improves – and you can bet that it will over time. And as the economy improves and your customers’ funds increase, you can expect their demand for your products and services to grow as well.
4. It’s easier to start new than to change the course of an existing business to adapt. Just like a heavy truck rolling down the highway, an existing business has to slow and make turns gradually. No matter how much agility they have built into their processes, they still take time to react and adapt to changes in the market. That’s not the case with a new business. You have no set course or direction because you’re not moving yet. It’s a simple matter of pointing your business in the right direction and stepping on the gas.
In conclusion, there are plenty of reasons why you shouldn’t throw away or delay your new business plans, just because the economy is in bad shape. If times are uncertain and you’re concerned about your stability, then you need more income streams, not less. And, while taking the leap can be stressful, you’re setting yourself up for a greater degree of peace in the future.
Most importantly, remember that the state of the economy should not be the central and deciding factor in whether or not to start your business. Instead, focus on the current state of demand for your product or service. Do your research, and go where demand takes you!