Turn on the TV and all you’ll hear is how the stock market still hasn’t fully recovered and how unemployment is still rising, so you might think I’m out of my mind to suggest that now is the perfect time to start a business. But I stand by my statement.
If we look at history, more millionaires were made during The Great Depression than any other time in US history and during our last recession in the early 90s many companies still thriving today were born, like Clif Bar.
There are numerous reasons why starting a business now is advantageous, but these are the top five.
1. Increased Opportunities
Anytime the economy changes or a new technology is introduced it creates opportunities in different fields. While some industries are shrinking, others are exploding. For example, while Chrysler is claiming bankruptcy because their gas-guzzling vehicles have become irrelevant, a San Diego-based company, Jitterbug, who produces simplistic cell phones with extra large numbers on them designed for the elderly is hiring and growing at breakneck speed.
2. Less Competition
In the first two months of 2009 the Department of Labor reported that over 800,000 small businesses closed. I can guarantee that these were businesses that may have been barely making it when the economy was flush and when the recession began they realized they did not have the proper infrastructure, their overhead was too high or their business model was flawed. These closures create a lot of space for smart new business owners to open and serve their customers.
In addition, many companies have cut their advertising budgets to lower costs which can give the public the perception of fewer businesses offering the same products and services as yours. The perception of less competition allows you to stand out and strongly establish your brand.
3. Decreased Trust
Let’s face it, the big companies melting down faster than Chernobyl this past year have withered the public’s trust. It’s become obvious that large corporations are not looking out for their employees and many didn’t even look ahead enough to protect themselves. Whenever the big businesses that people have equated with security go belly up, it creates a fear-based marketplace. First, people contract and don’t buy at all. Then they start wanting to buy, but look to do business with people they know and trust.
People who purchased their lotions and body wash at the mall are now more open to purchasing from their Mary Kay consultant. It feels good to them to know that the money they spend with someone they know helps out that family.
4. Discounted Resources
With many companies cutting back, businesses want to maintain cash flow so they are often willing to discount their services or products or offer longer payment terms than in the past. These options help a new business owner’s startup funds go farther.
One area these discounted resources should definitely be capitalized on is in the advertising market. Several larger companies that ate up available ad space have lowered their ad budgets, not only creating space for smaller companies to come in, but creating open ad space that publications, radio and TV stations need to sell. Many of these outlets will negotiate if asked. One of my clients got two ads for the price of one. These bargains allow business owners to make more of an impact for less money and to stand out while others are fading back.
5. Control of Your Future
Having a job is like putting all your eggs in one basket and then handing it over to a clumsy kid to carry. You have no control over whether you will get laid off, have your pay cut, have benefits taken away, have your hours lowered, etc. You have one line of revenue and if the powers you report to decide to cut that off, there’s nothing you can do. No matter how many hours or how hard you work, in most cases your salary stays the same.
None of the above has to be true if you own your own business. You can build a business model that allows for multiple streams of income so if one dries up, you still have the others. You control the amount of income you make because you are in charge of pricing and how much and how hard you work. You create your eggs and then you carry the basket yourself.
© 2009, Leah Grant Enterprises LLC. Publication rights granted so long as article and byline are reprinted intact with all links made live.
Will you be one of the millionaires who create their success during this recession? You could be! The timing is right. Get the info you need to launch a profitable venture in the New Business Mentor Leah Grant’s free success kit including a timely special report and audio Secrets of Successful Business Owners at leahgrant.com
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