6 Reasons Why A Tough Economy Is Ideal For Starting A New Business

Posted November 23, 2020 by in Career

Let’s face it: today’s current economic climate doesn’t exactly inspire people to be at their entrepreneurial best. Many folks feel consumed with thoughts of keeping their heads above water from a financial perspective.

As that’s the case, isn’t it a crazy idea to start a new business venture in such austere times? After all, shouldn’t you wait until the country reaches better economic circumstances? As weird as it sounds, now is actually the perfect time to start a new business! Here’s why:

1. There are Plenty of Opportunities to Make Money

There’s no denying that the world seems rather gloomy at the moment. The coronavirus pandemic, coupled with various political and economic issues going on these days, is undoubtedly taking its toll on many people.

However, the silver lining on that cloud of misery and uncertainty is you can still launch a profitable business right now. That’s because there are a plethora of opportunities that await an entrepreneurial person like yourself!

For example, there’s a rising demand for home delivery services – especially grocery delivery. As more people stay or work from home due to COVID-19, there’s more online spending in the e-commerce market.

2. You Can Learn from Other People’s Mistakes

It might seem like a corny phrase or saying, but you can learn from other entrepreneurs’ mistakes. There’s no point in reinventing the wheel for the sake of it, and with that in mind, it sometimes doesn’t make sense to reimagine an already winning formula for success.

Whenever you start a new business, one of the things you must do is plenty of research. You need to get an in-depth feel for your market, the competition, and the likely direction that your target market will face in the future.

One of the best ways of doing that is researching where other businesses have failed in the past. The reasons could be financial or even just a matter of bad timing.

3. You Can Become Next Year’s Success Story

The sad truth is some people end up in dark places in their lives for various reasons. As a result, they feel their careers and professional lives are over, and they’d never be successful at launching a new brand to a market they know and love.

In reality, virtually anyone can launch a new business if they’ve got enough determination and self-confidence. It makes no difference if you’ve never had a brush with the law or you currently have a criminal defense attorney fighting a felony on your behalf.

You might not realize it, but some well-known entrepreneurs in the world have a less-than-ideal personal background. Still, that hasn’t stopped them from becoming highly successful, especially in times of crisis such as the COVID-19 pandemic.

4. There’s More Than One Way to Do Things

All too often, people with an entrepreneurial spirit ‘play it safe’ and mimic what other business leaders do. Yes, that can be a way of achieving some success in their chosen market.

That doesn’t mean entrepreneurs can’t be innovative and achieve the same results through a more efficient process! One example that’s overcoming many challenges is the electric vehicle (EV) industry.

The internal combustion engine is old technology and one that isn’t particularly eco-friendly or efficient. EVs are fast becoming an innovative alternative to solving problems such as greenhouse gas emissions.

5. There’s a Bustling Talent Pool

One upshot of economic strife is lots of people are looking for new jobs. Keeping that in mind, you won’t find it hard to acquire the right talent for your new brand without breaking the bank.

Plus, if you’ve got an excellent business idea and you treat people that work for you as humans and not slaves, you’re going to get the best out of them.

6. You Can Turn Around a Struggling Business

Sometimes it makes sense to use an established brand as part of your plans to make waves in your target market. While most entrepreneurs would traditionally start from scratch, one thing you could consider is turning around an existing struggling business.

Why? Firstly, the brand has already got established in the market. Secondly, you can make use of the resources that come with the company. And third of all, you can quickly identify problems and resolve them to turn the brand’s fortunes around.

Even in the most trying of times, it’s still possible to run a thriving business. Of course, the trick is having the right ‘game plan’ and having the confidence to follow it through for a successful outcome.

*Photos by Olya Kobruseva.