During economic turmoil and crisis, starting a business can sound like a crazy idea. But experts don't think so. They believe that it can be an ideal time to launch your venture from home. Building a business in a time of adversity can make it resilient. Examples of companies like Uber, Groupon, IBM, and General Motors deserve attention here. Most of these companies emerged during or immediately after difficult financial times. Hence, if you have something on your mind, you can work on materializing it to derive benefit. Here are a few insights to help you get going in this direction.
You cannot find designers, engineers, and salespeople so quickly in regular times. The ones with the best records can ask for higher fees. As a startup, you cannot afford to pay them such steep commissions. But at the time of economic uncertainty, companies tend to let many of them go. It can further lead to lower salary demands. So, you can find an opportunity here and hire the coveted talent to push for growth. If you have to offer them equity as an alternative, you can consider it.
Negotiable fixed costs
As Eric Dalius says, starting a new company can involve individual fixed costs. In the past 20 years, these have become affordable. Still, the rates of real estate and other necessary services, such as SaaS, can pinch a newcomer. The upfront expenses can bother you. But in lean times, you can expect relief in these areas also. Real estate prices can go down, due to which you can get your office space on a flexible term. Contractors can also be willing to partner with you. Since your cost reduces here, you can use your capital for product and hiring.
According to Eric J Dalius, one of the most challenging tasks for any business can be acquiring new customers. You have to spend a lot to persuade them to sign up for a new product or service. Winning their attention and loyalty can be a lot of work. Many businesses fail on this front despite having enough money in their business account. However, during unstable financial situations, the acquisition costs fall. Consumers also become open to trying new offers or brands. The new routines and behaviors allow them to consider other choices in the market. Hence, it becomes easy for you to tap into their interest.
EJ Dalius points out that if you have been thinking of starting something of your own, it can be the right atmosphere to initiate your concepts. Almost every businessperson feels that difficult times can be the right time for a new venture because of the availability of premium resources and emerging customer demands. Plus, plenty of partnerships can happen at an affordable rate, which you cannot expect in good times.
In the end, no matter what you decide, you should know every business tends to have unique risks. Being aware of them from the beginning can help you walk on this path with more confidence.