Why You Should Start A New Business In The Middle Of A Recession
Would I start a new business in the middle of a deep recession? Absolutely, but very carefully, and a very well-planned and innovative business. It would be a business focused on the market’s realities and one that delivers to that market exactly what it wants and needs today.
Do a careful analysis of how the business model is typically being done and then streamline that model as much as possible. Use fixed price subcontracts, rewrite leases and explore the idea of reinventing your business model to yield a better product at lower volumes with higher profitability and controlled costs.
That’s the recipe.
Keep in mind that the challenge for an existing business is learning how to downsize and reinvent themselves in order to work effectively in this recession with decreased revenue and increased costs. It’s hugely different when one is starting up in such an environment as the business plan simply reflects the current situations, thus the start-up plan is set to win within the current parameters. New businesses should have less a problem figuring out how to operate profitably under current circumstances. Existing businesses have to change their ways and that is a goal that is a lot tougher to accomplish.
Careful consideration of a lot of the competition remaining is required. Businesses are doing it the old way while trying to make this difficult transition, reacting by limiting their marketing efforts as they make their adjustments, and thus allowing the competition – you – to gain ground and claim a larger share of the marketplace. As the new kid on the block, you have an opportunity to “beat up” on the unresponsive, existing, old school businesses who are hiding out waiting for the black cloud to pass and trying to figure out how to do things correctly in the down economy. You hit the road running.
The glass is either half-full or half-empty and the results will follow the attitude. The new guy looks at the current economy as today’s economy – not down nor up, just for what it is – and makes his plan accordingly.
Please! I’m calling all entrepreneurs to open up now! Don’t let the current condition of the economy stop you. There is a welcome and open door for innovation and better execution. Come on in, the water is warm and the profit potential is rich.
It’s a HUGE opportunity for those that know how to do it correctly.
My Grandfather made quite a grand living coming out of the depression, with Live Bait, he started selling worms in tin cans, then minnows. from his front door. Soon he built a building and sold fishing tackle & bread and asprin etc..soon it grew and grew. until he had the first carryout in town. But these days are musch different i think.
My daughter just opened a Photography/ local art studio, and she has high hopes of success. i wish her well. she has had good luck over the past year taking portraits of people. putting them on a disk. selling them at low cost.She lives in a collage town and caters to local artists. I hope she can make a go of it. she believes like you do, that this is a perfect time to begin a new busines. but i’m older and it worries me for her to invest in a huge building and everything..
Have faith and make certain she has the best business advice possible. Her success will not be determined by her photography skills but her business skills.