Like many people, you celebrated New Year 2020 with many hopes and goals for the year. You planned for a spring vacation. You were also thinking to visit the family in summer. Then, you might also be thinking of entering into a business venture with a friend. But by mid-March, you had to throw away all these plans, goals, and hopes. Instead, you found yourself stuck in your home for the foreseeable future. Outside, you are being asked to wear a mask (which you should). Inside, the only social interaction you have is with your pet and the smartphone.
While it is disconcerting to think about starting anything at this point, you have to remember that some of the best and biggest companies were born out of a recession. So yes, this could be the perfect timing to start your own business franchise marketing services company. That is if you know what needs to be done.
Best and the Brightest
What do you think General Motors, Airbnb, Burger King, CNN, and Uber have in common? They all began during a particularly bad time in America’s history. General Motors started during the 1907 financial crisis while Burger King first opened its doors in 1953 when the US, again, was in recession. CNN started broadcasting in 1980 when the US economy was so bad that inflation was at 15%. Uber and Airbnb began during the 2007-2009 global economic crisis.
You might think that it’s crazy for someone to start a business right now. People have lost jobs. The economy is in the doldrums. Many schools have closed down for good because of a lack of enrollees. Businesses are crashing. So, why would anyone in their right mind think about starting a business?
It is these reasons precisely why this could be the perfect time for a business. Think about it. What are the issues society faces today? Telecommunication? Food delivery? Employment? Advertising? Cleaning services? Laundry? Sanitation? Hygiene?
If think you have the solution to the problems that society is facing today, then why not offer these solutions? A difficult economic backdrop will make you a better entrepreneur. Trying to make your business work in such an unforgiving climate will make it resilient. Imagine it. If you’re able to survive through this pandemic, anything thrown at you will be a piece of cake.
Necessity Entrepreneurship
In the United States, more than 67,000 applications for new companies were filed in the last week of May. Experts call this necessity entrepreneurship. People start their own businesses because jobs are scarce. If you were laid off in the middle of this pandemic and you can’t find a job, what will you do? Out of need, you will start selling stuff here and there. Before you know it, you’re applying for a business permit and license.
People don’t have the opportunities they once have in a salaried job. That’s part of the motivation behind why they need to set up their own businesses. It’s part-need and part-opportunity.
The lockdown and quarantine allowed people to stay at home and think. They see opportunities and challenges. After stepping back from their busy work schedules, they can try out some business ideas they’ve been tinkering with.
Fewer Competitors
There will be fewer competitors in a recession. Banks are less likely to approve a business loan. So, if you have the money to fund your business idea, this is a great time because you’ll get a larger chunk of the market. Many are also considering business ideas that are not necessary today. Believe it or not, some entrepreneurs are thinking about setting up a travel agency because travel, they are sure of it, is going to make a comeback.
But stay away from what’s being offered in the industry. Think outside the box. Find a product or a service that others are avoiding right now. Find a niche that is yours alone. You’ll be surprised what’s in store in the future.
More Available Talent
During a recession like this, you also have more access to talent. People you wouldn’t even dream of hiring before are now available. Millions of highly qualified and skilled individuals over the world have lost their jobs. This is an opportunity for your new business to find exceptional talents. Although many of them would also want to start their own businesses, others will want to work for one as entrepreneurship isn’t for them.
The pandemic is providing a once-in-a-lifetime opportunity for those with entrepreneurial drive. Use this time well to develop business ideas and get the gumption to actually start it. Who knows? You just might be the next Walt Disney or Bill Gates, both of which also started their empires during a recession.
