Tuesday, October 7, 2008

What To Do In a Bad Economy

Yes, the economy is in bad shape. The economy goes through cycles and we're in a down one at the moment. It happens every 15-20 years and it's pretty unavoidable.

Of course, this could be the big one - the Roman Empire ended, didn't it? It's highly unlikely, but possible. If that's the case, there's nothing you can do. It will either come back over the next year or two or die. But one thing all the pundits seem to agree on is that it will get worse before it gets better. Big businesses will tighten their budgets, followed by the medium size guys and finally the small businesses will have the wind knocked out of them as everyone slows down.

So what's the best thing to do? Start a business!

You've got to be kidding, right? I'm not, and I have good reasons.

1. Less Competition

Right now people are struggling just to maintain the status quo. If they have jobs, they're bending over backwards to keep them. If they don't, they're praying their unemployment insurance will last as long as they will need it. Only the most confident are aware that this market is perfect for starting a new business. That means a clearer field for those who believe in themselves.

2. The Guys Who Think It's Easy Quit Early

Starting and running a business is hard work. The hours are long, the learning curve steep and profit uncertain. The rewards are also great, but those who go into business thinking it will be easy to make tons of money get out when times get tough. Again, less competition for those that stick with it.

3. Seedlings Grow Slowly But They Grow Steadily

Your new business will likely grow slowly, no matter what the economy. It takes time to develop a customer base, gain their confidence and build a reputation. If you start now, put your infrastructure in place and create systems that work, you'll be in exactly the right spot to grow rapidly when things turn around.

4. A Great Team Is Just Waiting To Be Found

When there are layoffs in the big companies, more talented players are searching for a place to land. This is a great time to put together a team of dedicated people who want to work and are glad to have a place to do it.

5. Think Worldwide

A weak economy means that you have suddenly become a worldwide commodity. Rather than outsourcing to other countries, they can now utilize American ingenuity for less cost. If you make it easy for them to find you and concentrate on building international business relationships through on-line networking groups and organizations, it's easier than ever to compete on a worldwide level.

6. Sell Luxury, Beauty & Ease

Okay, in this economy people may put off buying that new car or moving to a bigger home. Those big ticket items may be postponed. But people still want to indulge as their circumstances allow. So now, it's a pedicure instead of a weekend at the spa, an ice cream cone instead of that expensive night out. Maybe they have their house cleaned once a month instead of once a week. Maybe they call a decorator to move their furniture around instead of buying new. Use whatever you have to appeal to their pocketbooks and their desires.

The economy is in bad shape. Celebrate! Don’t do what everyone else is doing. Don’t spend hours lamenting and ruminating. If you have ever thought about starting a business, do it. Be smart, talk to business people you know, find professionals to help you, but do it. There has never been a better time.

1 comment:

jjmdj725 said...

I feel you are "spot on", this is not a time to be timid or overly conservative, but a time to be "stout" in your conviction and redouble your efforts. Don't sit back and whine about it, but take advantage of everyone on the sidelines watching and talking and go into action. Beat the bushes harder, network harder, revisit all of your contacts, and evaluate the benefits of the less traveled path and new types of marketing.

Survival will go to those with the best Plan, the best Strategy, and the best ability to Execute versus competition.

Those that sit, watch, and commiserate will be part of the "statistics" of the casualties of this downturn.

Time to make lemonade!!