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.
You have a great idea for a new business, you have a plan for how you’ll go about it, you may even have funding, customers and a web site design… Now you’re only stuck on one thing – choosing a name!We’ve spoken to entrepreneurs, marketers, strategists, branding experts and design gurus to get some structure on how to go about picking a name that will last, that you’ll still love in 10 years time and that will come to hold value in the mind of your customers.
1. How Do I Start?
Initially, begin by brainstorming a list of keywords that relate to your product/service, company or blog. Then hit the reference materials, look at dictionaries, thesaurus and online for more options around your chosen theme. Try to think of all different types of names, compound words like “Facebook”, blend together words like “RedStorm”, add affixes “coComment”, make up words like “Squidoo” or even phrases such as “StumbleUpon” or “GoToMeeting”Once you’ve got a healthy list, start cutting it all back. Begin by asking yourself:
2. Does It Mean Something?
Names can be classified on a continuum based on how they communicate to consumers. There’s a spectrum from descriptive names which speak directly to a product benefit or attribute, “Organic Supermarket” to empty vessel names, where it doesn’t mean anything about the product “RedHat Linux”.Descriptive names, such as “Murphy’s Ice Cream”, immediately convey information about what you do. They are simple, intuitive and help consumers easily identify the mission of your business.The downside? They can sound generic and boring, and the accompanying domain name is usually taken. They are also limiting in a fast-moving industry like technology, where what you do now might not be what you’ll be doing in a few years. Don’t forget, a name can be a prison… it can restrict what you offer and to whom you offer it as you move through the phases of development.
3. Or Does It Mean Nothing?
Empty Vessel Names can be completely made-up words (Kodak or Squidoo), words in another language “Hulu” which roughly translates both to “holder of precious things” and “interactive recording” in Mandarin), or those whose meaning is so obscure that people interpret it as an invented word “Google” (sparked from “googol,” the name for the number consisting of a one followed by a hundred zeros).Empty vessel names can be fun to say, can separate you from the crowd, and can be subtler than descriptive ones.But you may need to put in more money to get the word out initially. And a word to the wise: Check to see if the word means something in another language — you don’t want unintended meanings to make a mockery of your carefully crafted name.If neither descriptive nor empty vessel names appeal, try a suggestive name, which lies somewhere in between. Names like Apple which indirectly alludes to the simplistic and perfectionist values for which the brand would like to be known.
4. Will It Work Online?
Nothing kills a name faster than finding out someone else already has it, a competitor or even an totally unrelated business — and in the online hunt for domain names, it sometimes seems like every possible option is taken.More and more, search engine issues and domain availability are affecting the style of names businesses can launch with. Some people consciously try to create names with unique keywords so theirs will be the only result in targeted Google searches. Although it can be dangerous to go down this road as keyword incorporation can be viewed as spam by search engines.
5. Is It Sticky?
Amidst all the search engine and domain name drama, consider that names are memorable when they sound good. Names like “Bebo” and “Yahoo” are great sounding memorable names.You can also use poetic devices to ensure the names stick. Names based on rhymes (TopShop, HotSpot), repetition (Bebo,LaLa), and alliteration (FireFox,BlackBerry) tend to be memorable.For the advanced namers out there, try what’s called the “Part of Speech Test.” Look at whether potential names can be used in multiple parts of speech. These are stronger because people will use them in speech more often. LinkedIn, for instance, can be used as a noun “We connected on LinkedIn”, as an adjective “Did you look at her LinkedIn profile?”, and as a verb “I am going to LinkIn with him”. When a name passes the Part of Speech test, it becomes pervasive.
6. Is It Simple?
Any name should be easy to pronounce, easy to understand, easy to spell when you hear it, and easy to know the pronunciation when you see it written down. However, you can mitigate confusion by also holding domain names with likely misspellings and redirecting users to your correct site. Remember, although almost all single word domain names are gone, try to keep your name short as it has to appear in email addresses and on business cards as a www.Punctuation is trickier. Although adding hyphens to domain names or underscores to Twitter handles may allow you to get the name you wanted, people are likely to accidentally leave them out, especially when typing on mobile devices. You’re better off avoiding punctuation if you can.
7. Forget the Rules
If a name is really meaningful to you, it might work even if it doesn’t quite meet all the other criteria. So don’t be intimidated by the rules — just grab your thesaurus and get going. Check with friends, ask them to describe what type of business the name suggests, can they spell it? Pronounce it? And can they remember it a week later?
When choosing a name for your new company, keep these tips in mind to help you find one that will work now and in the future.Naming a business is a lot like laying the cornerstone of a building. Once it’s in place, the entire foundation and structure is aligned to that original stone. If it’s off, even just a bit, the rest of the building is off, and the misalignment becomes amplified. So if you have that gnawing sense that choosing a name for your new business is vitally important, you’re right. To help you get off to a good start, read on to discover the top 8 mistakes people make when it comes to choosing a name for their business:Mistake #1: Getting the “committee” involved in your decisionWe live in a democratic society, and it seems like the right thing to do, to involve everyone (your friends, family, employees and clients) in such an important decision. This approach, however, presents a few problems. Mainly, you often end up with a consensus decision, which results in a very safe, very Vanilla name. A better method is to involve only the key decision-makers – the fewer the better – and select only the people who have the company’s best interests at heart and those who have experience in this naming process.Mistake #2: Employing the “train wreck” method of creating a nameWhen forced to come up with a catchy name, many aspiring entrepreneurs simply take part of an adjective and weld it onto a noun, essentially colliding the two words head on to create a new word. The results are names that have a certain twisted rationale to them, but look and sound awful. Someone starting a high-end, service franchise becomes QualiServe. Someone starting a classy day spa becomes TranquiSpa. Fundamentally, there’s nothing wrong with either word, but they just don’t go together. The problem with this approach is that it’s forced–and looks and sounds that way.Mistake #3: Using words so plain they’ll never stand out in a crowdThe first company in a category can get away with this one. Hence you have General Motors. But once you have competition, it requires differentiation. Imagine if Yahoo! had come out as GeneralInternetDirectory.com? The name would be much more descriptive but hardly memorable. And with the onslaught of new media and advertising channels, it’s more important than ever to carve out your niche by displaying your uniqueness. Nothing does that better than a well conceived name.Mistake #4: Taking the atlas approach and using a map to name your companyIn the excitement of starting a new company, many businesses choose to use their city, county or region as part of their company name. While this may actually help in the beginning, it often becomes a hindrance as a company grows and reaches farther afield.Mistake #5: Turning your name into a clicheOnce past the literal, descriptive word choices, your thought process will most likely turn to metaphors. These can be great if they’re not overly used. For example, since many companies think of themselves as the top in their industry, the world is full of names like Summit, Apex, Pinnacle, Peak and so on. While there’s nothing inherently wrong with these names, they’re overworked. Instead, look for combinations of positive words and metaphors, and you’ll be much better served. A good example is the data storage company Iron Mountain, a name that conveys strength and security without sounding commonplace.Mistake #6: Making your business name overly obscureIt’s great for a name to have a special meaning or significance – it sets up a story that can be used to tell the company message. But if the reference is too obscure or too hard to spell and pronounce, you may never have the opportunity to speak to that customer because they’ll simply pass you by.So resist the urge to name your company after the mythical Greek god of fast service or the Latin phrase for “We’re number one!” If a name has a natural, intuitive sound and a special meaning, it can work. If it’s too complex and puzzling, it will remain a mystery to your customers. This is especially true if you’re reaching out to a mass audience.Mistake #7: Selecting an awkward nameDriven by the need for a domain name, many companies have resorted to awkwardly constructed or purposefully misspelled names. The results are company names that sound more like prescription drugs than real life businesses, names like KwaliTronix. It’s amazing how good some names begin to sound after searching for available domain names all night. But resist the urge. Avoid using a “K” in place of a “Q” or a “Ph” in place of an “F”. This makes spelling the name–and locating you on the internet–all that much harder.You may argue that “Xerox” and “Kodak” are pretty awkward. Keep in mind that many of the companies that successfully use this approach were either first to market or have large marketing budgets. “Verizon”, for instance, spent millions on their rebranding and education efforts. So did Accenture. So check your bank balance before you decide on these types of names.Mistake #8: Choosing the wrong name and then refusing to change itMany business owners know they have a problem with their name and just hope it will somehow magically resolve itself. Often they began with a regional name “Dublin Cleaning Services”. Having expanded nationwide they needed a change but how to do this with out losing the trust and brand value they have created over the past years of service? “DCS – nationwide cleaning”.And Finally…In the fever to start your new business or expand a current one, take time to think through some of these issues. By tapping into your creativity and avoiding these potential pitfalls, you’ll be able to create a name that works for both the short and long term. Like the original cornerstone of a building, it will support upward expansion as your company reaches new heights.