6 Great Reasons To Start A Business NOW!
Why start a business now?
We have experienced some exciting times with COVID, the Great Resignation, and may be in and heading towards a recession. Businesses are currently thriving and surviving, by finding ways to remodel and revamp their business systems to reduce the amount of money they're spending and increase the amount of time they have before cash runs out.
All of that being stated, this may be one of the best times for you to launch your business.
By using a lean planning system, beginning a business during a recession may enable you to take advantage of a weaker economy and avoid many problems facing current companies.
Here are several reasons to consider:
You can find solutions to NEW issues.
Economic hardship creates new issues. These issues result from people's ongoing needs or pain, which frequently don't have an immediate fix. To help explain why customers will switch to you, be aware of how consumers currently handle this issue and who offers the best current solution.
Concentrate on presenting your company, product, or service as an innovative and superior solution. Show how your answer is more immediate, dependable, affordable, etc., even if there are alternatives. In the case of COVID-19, starting with remote, delivery, or as-a-service variations of goods or services that have yet to pivot successfully may be the best way to approach a new business idea.
You may be able to provide better, faster, and cheaper service.
As a result of the need to cut expenses during a recession, businesses and consumers may be open to your solution. If you're starting your business from home, have few employees, and have little overhead to maintain, then this combination puts you in a fantastic position to offer a cheap solution and win clients.
You'll likely win them over as long-term clients if you can save them money while providing better service or a quicker turnaround. They might support your company if you build a relationship with them now and point to you as one of the factors that allowed them to endure the crisis. You can always look to raise prices or introduce new services that these clients will be more willing to accept as the economy improves because of how you helped them in the past.
You can enter the market while your competitors struggle.
The time is now to enter the market if you've always wanted to open a business but felt the market needed to be more open. Your competition and the market are now available to a new entrant because big and smaller companies struggle to adapt and survive in different ways during a crisis. Similar to finding competitive customers, your chances of surviving the economic downturn are higher if you can start small and work from home.
Asking customers how they feel X company is helping them during this crisis may be the best thing you can do to aggressively take on the current competition. Furthermore, "What do you wish they were doing differently?" Answers to those questions can put you in a better position to avoid the errors of incumbents and offer current customers a better solution.
You may have access to better credit.
Likely, banks and credit card providers are lowering interest rates to help promote spending. This is good news for those just starting a business because there are fewer penalties and possibly higher credit limits associated with loans and credit cards. It would be best to look at more conventional credit options as businesses look for emerging relief options like the Paycheck Protection Program and SBA Economic Injury Disaster Loans to help mitigate loss and improve cash flow.
Remember that most lenders will require you to submit a solid business plan with financial information and projections if you decide to apply for a loan. This supports your application and demonstrates your long-term perspective and ability to manage the funds well.
There will be lower levels of market competition.
One of the main advantages of launching a business during a recession is that less competition will inevitably enter the market. You can concentrate on competing with established rivals without worrying about new competitors taking advantage of the same position as you. However, you will eventually need to consider this and use this advantage to position your company to face increasing competition as the market changes.
Prepare for sustained success.
For your business to be successful, you must strike a balance between the short-term advantages of starting during a crisis and the long-term post-crisis planning. However, because you're starting a business during hard times, it's easier than you might think. By doing this, you can ensure that you are using lean planning techniques and that you routinely modify your strategy in light of performance, the market, and consumer behavior.
Your business is actively developing and expanding when customers are less likely to engage in wasteful spending patterns. In a world where almost everything is uncertain, you establish your brand as a pillar of reliability and constancy. Starting your business now ensures that you have the skills necessary to survive financially challenging times and that these habits will guide your long-term planning strategies.