Why recession could be the right time to start your business
We are now in the grips of probably the greatest uncertainty many of us will have ever known, so why could now be a good time to start a business?
There are always reasons or excuses not to start a business, as I know from personal experience – lack of funds, lack of confidence, lack of knowledge, moving outside of your comfort zone and the classic ‘now is not a good time’.
Starting a business in the midst of a recession does not seem like the right time, does it?
Well, it can be. Many great businesses emerged from hard times, General Motors, Burger King, Microsoft, Fedex and Airbnb to name but a few.
I’m not suggesting your business idea is going to take over the world, but instead of looking at reasons not to, let’s look at why now could be a good time to start your business.
Here are a few ideas.
1. Finance is available
Strange as that may sound, with financial institutions tightening their belts, now is a good time to get low interest loans.
Interest rates are at their lowest ever, Government and local authorities are looking at means to offer grants and support for small businesses, and private investors are looking for investments from which they may get a higher return.
The British Business Bank provides a good source of information on financing options for businesses, and toolkits to identify the type of finance that may be most suitable for you.
2. Necessity brings new ideas
At times of recession new problems arise that need solutions. Solving these problems is the foundation of great business.
Small businesses are in a unique position to adapt and change very quickly, spot holes in the market and fill them quickly.
This has been particularly true during Covid-19, with local small businesses providing services that bigger companies could not adapt to.
Business is all about solving problems.
3. Lack of competitors
The harsh reality of recession is that some businesses do not make it through. This can leave bigger gaps in the marketplace.
Businesses that start when things are hard tend to be more streamlined, more cost efficient, very aware of how and where they spend their money.
If you can start-up and weather the storm of recession you are in an ideal place to take advantage of the upturn when it comes, and you will have learnt a lot about business survival.
4. Quality help is available
There is a lot of business help available, from individuals offering support, to businesses needing new business.
Another harsh reality of recession is talented people lose jobs. That talent can be tapped into. Short-term, flexible freelancers can give you the help you need without costing a fortune.
Other businesses are looking to increase their trade and offer good terms and good prices, you may need to work on your negotiating skills, but the deals are out there.
“The way to get started is to quit talking and begin doing.” – Walt Disney
We go back to the beginning – there are always reasons not to start-up your own business, recession does not need to be one of them.
If you would like to talk through your business idea then book a complimentary call with me to discuss the next steps for you and your business. And check out my business start-up services to see how I can help you with your business.,