If you are brave enough to turn on your television right now, all you will hear is how the stock market hasn’t fully recovered and how unemployment is still rising, so you might think I’m crazy to suggest that now is the right time to start a business. Let me explain why I believe this to be true.
History shows that more millionaires were made during The Great Depression than any other time in US history and during our last recession many companies were created that are still thriving today like Clif Bar.
There are many reasons why starting a business now is advantageous, but these are the top five.
Whenever the economy shrinks or new technology is introduced it creates opportunities in many fields. While some industries are shrinking others are exploding. For example, when Chrysler declared bankruptcy because their gas-guzzling vehicles had become irrelevant, Jitterbug, a San Diego-based company, who produces simple cell phones designed for the elderly is hiring and growing at breakneck speed.
The Department of Labor reported in the first two months of 2009 that over 800,000 small businesses closed. I can guarantee that these were businesses that were struggling when the economy was strong 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 company closures create a space for smart new business owners to open and serve their customers.
Also, many companies have cut their advertising budgets to lower costs which can give the public the perception of less competition offering the same products and services as yours. This perception allows you to stand out and establish your brand.
Big companies are melting down faster than Chernobyl and this has withered the public’s trust. Everyone now knows that many large corporations are not looking out for their employees, their customers and many didn’t even look ahead enough to protect themselves. Whenever the big businesses fail a fear-based marketplace is created. First, people don’t buy at all and later when they want to buy they will want to do business with people they know and trust. This opens the marketplace for small businesses.
For example, people who purchased their bubble bath or cosmetics at the mall are now more open to purchasing from their Avon consultant. It feels good to them to know that the money they spend with someone they know helps out a small business owner and their family.
Businesses suffering from customer cutbacks want to maintain cash flow so they are frequently willing to discount their services or products or offer flexible payment terms than in the past. This opportunity helps a new business owner’s startup funds go farther.
New or established businesses should capitalize on the opportunities in the advertising market. Several larger companies that bought up all available ad space lowered their budgets and created space for smaller companies to buy and also created open ad space that publications, radio and TV stations need to sell. Many of these outlets will negotiate when asked. One of my clients got two ads for the price of one. These bargains allow businesses to make more of an impact for less money and to stand out while others are fading back.
Having a job is like putting all your eggs in one basket and then handing it over to a child 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 or increased, etc. You have that one income and if the management 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.
Will you be one of the millionaires who create their success during this recession? You could be! The timing is right.
© 2009 Leah Grant Enterprises LLC.
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 http://www.askleahgrant.com/