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.