We’re currently living in very uncertain times what with the COVID-19 pandemic throwing life as we know it up in the air and leaving us unable to predict what will happen with the economy, so you could be forgiven for thinking that now is not the time to start building a business. That, however, might not be the case.
Although it is not always easy to start and grow a business in times of uncertainty, such as recession, there are many examples of people who have done just that. For example, companies as well-known and successful as Airbnb, IBM and Disney were all started in a recession, proving that it really is possible to do well in times of uncertainty! So you might not have to put your dreams on hold after all.
Want to try building your business right now? Here are a few things that might help:
Lower your costs
If you can set your business up as inexpensively as possible. That will give you the best chance of succeeding in uncertain times. That might mean shopping around for a more affordable spiral cutterhead planer for your woodwork business or using freelancers instead of full employees in your design agency, but you can always spend more money when things pick up again, and often you will find that the more affordable solution is actually a perfectly good one for your purposes.
Get the price right
In times of recession and uncertainty, consumers still consume but they tend to look for bargains more often than usual. That means, if you want to start building your business, you need to do so at a lower price point. That might mean modifying your products and services a little so they can come in under the competition or paying yourself less for a while, but if it means you can build a strong business it will be worth it in the end.
Meet a need
If you business idea doesn’t meet an important need, it has a far lower chance of succeeding in uncertain times. Why? Because people will be watching their pennies, which means they will be less likely to spend on non-essentials. That’s why setting up a business selling, for example, essentials like good quality basic clothing is always going to be more successful than a company selling shirts with silly slogans or fancy dress that will only be worn once, in the short term, at least.
If you can build a business that offers new opportunities to other people who are looking to improve their own situations during a tough time, then you stand a great chance of succeeding. Airbnb is a good example of this in that it started up in a recession and gave other people the opportunity to improve their own finances by renting out their properties while building their own business. If you can hit on a way of doing this with your own company, you could be on to a winner.
Times may be tough, but if you have the skills, determination and innovation to succeed, chances are you’ll do just fine.