I recently sent out a query looking for stories from mom entrepreneurs who are making "lemonade from lemons" in this current economy. I received some great stories many of which I will be highlighting in the next several months.As a prelude to these upcoming posts, I wanted to offer a great article I found on The Toilet Paper Entrepreneur's Blog written by Mike Michalowicz who is an author, entrepreneur and professional speaker.
The sky is falling. Oh – My - God. It’s all over. Stick a fork in us, we are done. NOT!
So, the economy sucks! So what? Here’s some news for you, bucko. It sucks every ten or fifteen years. Welcome to the great cycle of the economy. We go through this all the time, and here is a predication, it will continue to stink for quite awhile. Perhaps another year or so, then it will begin to heal and thrive again. It always has and always will, cycle.
But what if this one is truly the end; the great collapse? What if this is the death of the proverbial Roman Empire? It could be. It is very, very unlikely, but it could be. And if it is, don’t worry about it since there will be little you can do.
So here we sit, as entrepreneurs, on an economy that sucks. It will either revive over the next year or two or even perhaps die. But one thing for sure, it will get worse before it gets better. Big business 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.
And it is now, right in this moment, that it is the best time to start a business. Yes, it’s true. So true that it is worth repeating. Now is the best time to start a business. Here’s why:
- Less Competing Startups – Most people don’t want to start something when things are bad, so they don’t. This is the old “buy low, sell high” rule. If most people are going one way, your advantage is in going the other way. Start when they aren’t.
- Get Rich Quick Guys Run Away – The folks that were in business to get rich quick go running for the hills when times get tough. And with them exiting, there is even less competition for you to worry about.
- Plant The Seed – If you get started now, your business will likely grow slowly. I mean, a slow economy means slow business for you. But that is true of a startup in a strong economy too. So grow lean and mean during these quiet times, and be positioned to grow explosively as the economy recovers.
- A-Players Become Free Agents – When the big companies start laying people off, and they already have, some great talent will be freed up. Instead of using a high cost recruiting service, a smartly placed (free) Craig’s List ad may land you a top shelf A-player.
- Go International – A weak US economy is typically coupled with a weak US dollar. That means our other countries can buy from you, here in the US, on the cheap. Make it easy to do business with you, and global economy is at your beckoning.
- Time for Luxury – What? Am I crazy? Nope, I’m not. Luxury items actually sell stronger in a weak economy. Certain luxuries that is. They are called micro-luxuries. These are items and services under $100 that emotionally replace the loss of big, expensive luxuries. When people give up the new car they wanted or the renovation to their house, they instead start buying more of those inexpensive emotional replacements like a dinner out, or a day at the spa, or that triple latte grande.
The economy sucks and it is time to celebrate. Don’t do what the others are doing. Don’t sit there, curled up in a ball sucking your thumb. If you have ever wanted to start a business, there is no better time then now. Be cautious and be smart, just like you would at any other time starting a business. But don’t be dumb and wait. There has never been a better time to start a business… except for the last economic downturn ten or fifteen years ago.
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