Top 10 Reasons to “Start Up” in a Recession

by | Business Coaching, Business Development, Communications, Marketing, Strategy & Planning

More publicity… Less competition… Talent waiting to be scooped up… Here’s why starting up in a recessed economy may give your business a better shot.  Do you have one good reason to start your business right now?Regardless of what people around you (including the media) may say, right now is the best time to get into business.  Here are our Top 10 reasons you should start your business now-despite the current downturn:

1. Everything is Cheaper

Let’s face it – There is great value now in economic markets. This is the right time for fantastic deals in virtually every category, from land and equipment to commercial office space, personnel and fit outs.  Some people have waited years to find value in these markets – and now that time has come.

2. Qualified People Are Hungry For Jobs

Having highly qualified people is the lynch pin of success in any business but it is an area where start-ups can fall.  Start-ups are often unwilling and always unable to spend enough to get the highest level team to ensure the success of the business.  This all changes in a recession.  There are people now available willing to accept lower remuneration and keen to get a slice of the pie in a start up.  Mindsets change in a recession too – those individuals who would normally never consider working in a small start-up are changing their focus on work directions.  This all means that you will be able to source a really strong team at the outset for a fraction of what it would cost you in a growth environment.

3. Great PR By Going Against The Trend

The media loves a good story, and if you are optimistic by expanding,re-branding or getting into business now, you will find yourself and your new business in that category.  Great PR like this will go a long way towards launching or branding your new business without it being seen as “Selling”.

4. Suppliers Are Giving Better Credit

Because the credit markets have virtually shut down, the B2B credit flows are keeping money circulating out of sheer necessity.  That means a bullish outlook for companies looking for good terms on stock and inventories. When everyone is looking to survive, great deals can be had.

5. Believe it or Not There is Still Finance Out There

Individuals, family and friends who traditionally invested in stocks and shares will be less enthusiastic to do so at the moment but they’ll still want to put money into ventures likely to show revenue streams and eventually profits. That means they may be willing to finance a portion of your new venture, or the expansion of an enterprise that has proven itself over time. If you have a solid business plan that delivers real numbers, your chances of raising the capital you need increase exponentially.

6. Businesses Are Changing Suppliers

Everything is now on the table.  As a smart Start-up if you can come in with greater value and an understanding of where your prospect is hurting you have a good chance of winning new business.  You also have the advantage of being the “new kid on the block” when it comes to pitching your products and services. Many companies are desperate to find new partnerships with new businesses that have a different, better or more innovative way of delivering those products and services.

7. You Can Buy Everything You Need at Auction

In addition to everything being less expensive, you can find great deals at auctions, especially in terms of any large equipment and office furnishings. Auctions are also a great place to find hardly used or “gently” used restaurant and bar supplies at great prices.  It’s an opportunity for you to get set up for a fraction of the price it would cost you in a growth market.

8. Ownership Equals Tax Incentives

Business ownership offers a variety of tax benefits that aren’t available to employees.  While taxes should never be the sole reason to go into business for yourself, it should be one reason to add to you “benefits of business ownership” list.

9. You Can Find Great “Low Money” or “No Money” Deals

Many current business owners want out at any cost, meaning you can negotiate great win-win deals that allow the current owners to exit while giving you an opportunity to turn around what could be, if run right, a very viable business.And finally . . .

10. You’ve Lost Your Job, and You Have To Do Something

Sometimes, the best business decision is the one you are forced into, and the incentive (as well as need) for income is often enough to push you to go out on your own. It is also a great opportunity for you to strike out in area in which you have always been interested but had not considered part of your planned career.

There you have it:

Redstorm’s top 10 reasons to start your business in a recession. There’s no better time to start than now. Give us a call on +353 1 2360909 if you’d like to chat through any opportunities you are considering.

Four Small Business Marketing Steps

by | Branding, Business Development, Marketing, Strategy & Planning

Wonderful flashy graphics, bright colors and spinning messages, they may look great but do your potential customers actually know what you are trying to say?

I think the biggest mistake we make in marketing is making everything so difficult for consumers to understand that they just  don’t get what it is we do.  And if they don’t understand it, they won’t feel compelled to act or buy… Marketing is about informing consumers about your products and services and telling them why they should pick you over your competitor – it really is that simple.

Are you doing that? If you are not it’s time to really analyse your marketing strategy and evaluate the point you’re trying to get across.

How do you do this? It’s by moving a customer from the point of just attracting their attention to inspiring them to actually take action – which is making a purchase from you. There are four basic (but often forgotten) steps to doing this.

  • Step 1: Get their attention
    You have competition, it doesn’t have to be a lot of competition – but you have competition. It is up to you to get the attention of your consumers. Do you know how to do that? You speak to their need. You inform of them of the solution that you provide for that need. If you don’t provide a solution that benefits their business – it’s time to get back to the drawing board.

 

  • Step 2: Create a marketing message that speaks to them
    You know your solution, and you know they need it, now you have to create a message that says “I’m your answer.” Have you done that with your marketing message? If not, why do you think they will buy your products or services? If you don’t inform them about your product who will? Craft your marketing message so it’s easy to understand and a consumer doesn’t want to walk out of a store without purchasing your product or service. Your marketing message has to speak about the solution as well as creating an urgency for the need. Have you done that? If not, again take it back to the drawing board!

 

  • Step 3: Evaluate different marketing methods
    You have to examine the different marketing methods available today and really evaluate which ones will work for you, with your target market in mind and your budget in sight.  Be aware of, and informed about, different marketing methods and which ones will work with your market. It’s not a one size fits all deal and these new marketing tools are changing every week.  It’s an exciting time for marketing with all the new mobile and digital tools becoming available and the winning marketeer is the one who harnesses these new tools tightly and creatively for their business.

 

  • Step 4: Use marketing methods that are visible to your consumer
    The reason you need to evaluate the different marketing methods and tools is so you can select those that are more visible to your potential purchaser.  The great thing about marketing a small company is the ease with which you can create tightly targeted campaigns depending on your given audience for specific products or services.  Don’t feel that a nationwide TV campaign is a must if a creative digital and mixed media campaign is affordable and successful. When you select the right marketing methods, you create a market position for your business that your potential consumers will see. When you select the wrong methods of marketing, you might as well throw your money out the window.