Starting a new business is not for the faint of heart. For those who possess the entrepreneurial spirit, though, now might be the perfect time to begin a venture.
In the midst of the worst recession in decades, it might seem prudent to postpone a launch. But there are some compelling reasons why now is actually a good time to start a business.
Beginning a venture in lean times will force the entrepreneur to pay close attention to planning, market research, cash flow and other critical issues at the heart of failures in the first five years. Tough times encourage start-ups to protect assets and invest more cautiously to avoid the “irrational exuberance” that Alan Greenspan warned would lead to financial collapse.
In tough economies, you understand from the start that you’ll need to use the first several months to position your company for success. You’ll need adequate funding to sustain a slower growth, and a more targeted approach to marketing. When the economy is booming, it’s easier to realize early success. A company that can grow early successes in a weak economy is poised to surge ahead when the situation improves.
The costs of starting a new business are lower than they have been in recent years. Many of the products and services you’ll need are available at discounted rates: professional services like accounting and legal services, real estate, office furniture, and other goods and services.
During hard times, you as a consumer are in a stronger position to negotiate favorable terms than you would be if you wait for the economic rebound.
With the presidential campaigns bringing new focus to the government’s role in business development, it seems likely that the current uncertainty in the business environment will be replaced with regulatory and tax conditions that will truly promote job growth, along with real opportunities for both new and existing businesses. If you’ve already begun laying the groundwork for a well-planned and marketable business, these policy changes could enhance your efforts with some genuine support from local, state and federal governments.
The impact of regulations on business are likely to be defined so that businesses can plan and make decisions on known conditions. As that takes effect, your business could be in position to benefit from “the rising tide that lifts all ships”.
Naturally, these hard times will require some meticulous attention to detail as you develop the plans for building your dreams and starting your business. You’ll need to be certain you have the operating capital to sustain your business and your family while you develop your customer base. And you’ll need to have a robust and realistic budget for marketing and promotion. Careful planning, adequate funding and attention to detail are cornerstones of any successful venture, regardless of the economic environment in which they are born. If you have what it takes to be successful, starting a business now could position you for greater success when the economic environment improves.
