Despite being in an economic downturn, with prices increasing and our way of life being changed drastically over the last couple of years, there are positives to being in a recession. Businesses are having to learn and adapt, finding new ways to maximise budgets and thrive against competition.
Starting a business in a downturn can seem like a bad idea but, this is potentially the best time to take advantage of the weakened economy and start your business with problem-solving already in place.
Find a Niche
During tough times it can be easier to assess issues and find solutions. If you have a business idea that can solve a current problem, you may have instant success on your hands.
Fulfil a Need
When people are struggling with their finances, they are not going to spend money on unnecessary or frivolous items. If you have a business idea that can provide an essential service, you are more likely to succeed.
Invest in Yourself
Investment opportunities can be hard to secure at the best of times, in a recession this is likely to be even more difficult. For this reason, you have a better chance of success if you can take the plunge and provide some investment for yourself. When the economy improves you can look at outside opportunities and reassess your finances.
With the world constantly changing, the most successful businesses can anticipate problems and have plans rather than react when issues have already occurred.
There are several acceptable ways to save money on overheads. It is now more common for people to work from home, which saves money on buying or renting workspace. Only hire additional staff when this becomes essential. Another thing to consider is buying equipment from companies that have had to close. There are many businesses that are selling assets, this allows you to kit out your start-up at a fraction of the cost.
With companies of all sizes trying to adapt and struggling to survive, industries are vulnerable to new businesses. If you have the means to offer something that your competitors can’t, this will ensure you gain new customers and keep them when the economy improves.
While businesses are trying to sign up new customers take advantage of offers, this can cover everything from equipment to computer software. Many companies are willing to offer discounts to secure new long-term custom. Research banks and credit card companies as you may be able to get better interest rates on business finance and credit cards.
You still need to have a good idea and a high-quality business plan, especially in a difficult economic environment. Luckily CBM is on hand to help with your business plan writing needs. Contact us today for a high-quality, professional service.