Starting a business in a down economy can provide many challenges and benefits. There are literally thousands of small businesses that sprout up from the ground on a daily basis. Many businesses grow and turn into successful companies, others die off or don’t make it past the statistical 5 year failure rate. Regardless of what your business is, you’ll find both pros and cons for starting a business in an economical down time, though I choose to focus on the pros of starting a business during these periods.
1. Historical Figures: Many of the biggest and most successful businesses, companies and corporations were founded in the 1920′s after the great depression. Why?
People lost their jobs and they had no money, so they had to learn how to make money on their own. This is where the true entrepreneur was born and marketed his/her service. So anytime you think the market timing is off, it’s all relevant.
2. Conditioning: You may start off with low amounts of business or cash flow since after-all you wil be competing against other competitors who are cutting their rates to produce revenue. The upside, is that if you can clench your teeth and hang on and do moderately well now, you’re building the foundation to your business during the roughest patch. Things will get better as they always see a turn-around. Also, remember that any starting business will almost never get away with charging more than their competition, unless they have a market-in or own a monopoly in their industry.
3. Business Expenses are Affordable: If your business requires a commercial property for lease, commercial real-estate owners are hurting too. Therefore, you’ll usually be able to find a very good deal with today’s market. This is a good time to negotiate a multi-year leasing agreement that will guarantee you to lock in on record-breaking rates. If you are to buy property, same thing applies as we’re now sitting on record-low interest rates for another continuous year.
If you’re contemplating starting up a new business venture and are wondering if it’s safer to wait until the economy turns around, you’re wasting valuable time that can be spent building the foundation for your business, so that when the economy comes back around, you’ll be riding the wave of all your hard work.
Until next time!
Josh Olswanger
Thrive Web Designs – Boise Web Design, Logo Design, Hosting, and more!
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