Start Now: 4 Reasons to Start a New Business in a Slow Economy
4 reasons to start a new business in a slow economy
The signs of a slumping economy are all around us; rising food prices and tighter lending are just a few of the challenges facing Americans. So where does this leave aspiring entrepreneurs? You may be tempted to put your business plan on hold, but don’t file it away just yet. First, consider these advantages of starting up in a slow economy:
1. There’s less competition. If you’re scared to open a business right now, remember: So is everyone else. By starting up now, you could beat a number of your would-be competitors to the punch. Less competition can help in other ways as well. If your bank is dealing with fewer business loan applications, yours may be approved faster. Or if things are slow for your local newspaper, your press release has a better chance of being picked up.
2. You’re forced to make smarter financial decisions. Starting a business now—when there aren’t a lot of funds to go around—means you’ll be more likely to cut unnecessary expenses and stretch every dollar. If conservation is your game plan from the beginning, then you’ll set yourself up for success in future slowdowns.
3. Your business has time to develop. Before growth comes research and development. This trial-and-error phase can last a few months or even a year. You’ll be making mistakes and figuring out strategies to improve. Going through these awkward beginning stages during a slow economy can be ideal. By the time customers have more money to spend, you’ll have operations running smoothly.
4. Good deals are out there. A slow economy might help you get a better deal on your necessary startup expenses. Office parks in your area may be lowering rates, or you might be able to negotiate a better deal on ad space in some outlets. If you need a vehicle for your business, the auto industry’s losses can be your gains in how much you save on the purchase.
By Julie Carney
Julie Carney is with the NFIB Young Entrepreneur Foundation, www.NFIB.com/YEF.
For more resources about staring and growing business in a down economy, see the following links which we found on the WE-Inc newsletter:
For suggested classroom exercises, see the following posts:
Happy Turkey Day everyone!
Entry filed under: Curriculum, Educators, Entrepreneur, NFIB, Teachers, Teaching tools, Young Entrepreneur, Young Entrepreneur Foundation. Tags: business, classroom exercises, Darren Hardy, down economy, grow, Julie Carney, make money, NFIB magazine, NFIB Young Entrepreneur Foundation, slow economy, start up, success magazine, success.com, we-inc.