Improve your chance of success
The following is the fourth and final installment part in a multi-part series focusing on entrepreneurship in a recessionary environment.
IMPROVE YOUR CHANCE OF SUCCEEDING
There are a few specific things that a business can do in both good and bad economic times to increase the likelihood that it will succeed. Some of the following tips apply specifically to a recessionary environment, while others hold true regardless of the economic climate.
PLAN AND REINFORCE. It is imperative that you have a sound business plan, engage in strategic planning and have solid legal planning. These activities while they take time to do help you think about and begin to address the risks of operating your business. Hiring a business consultant – like Precise Advisory Group – will help you protect how you establish your business and prepare and conduct your business for its future. In so doing, you ensure the initial launch of your business, provide a sustainable business structure to endure the changes that are inevitable and create a favorable professional impression for clients, investors and employees.
RECOGNIZE A MARKET GAP AND FILL IT. Recognizing a market gap and filling it helps a business succeed in any economic climate.[1] It is possible to start a business that benefits from the recession. A business that helps other businesses stay in business will surely be in high demand during a recession. For example, Wipfli, which was founded during a recession, provides services such as tax preparation, business planning, and corporate finance and helps business stay afloat during tough economic times.[2] The Yellow Pages, also founded during a recession, gave struggling consumers an efficient opportunity for comparison-shopping.[3]
MAKE IT CHEAPER. During a recession, consumers are looking to save money in every way possible. Even if you do not have a brilliant new product, your business can thrive during a recession by simply taking an existing product and making it cheaper. Companies like Plymouth, Miracle Whip, and Penguin Publishing became very successful by giving consumers exactly what they were looking for during a recession: low prices.[4]
KEEP COSTS LOW. Regardless of the economic environment, it is always important to run your new business as cheaply as possibly. Running out of money can spell immediate death for a new company.
FINAL THOUGHTS
In addition to everything stated in this series, there are a few more things to keep in mind when considering whether to start a business during a recession. Look into starting a home-based business.[5] Make sure that you look into opportunities online.[6] When it comes to advertising, try and be creative and smart with your money.[7] Finally, if you are lucky enough to still have a job, keep it.[8] Your new business could be a safety net to supplement your current income, not replace it, but the best thing to do is become an entrepreneur fully and completely.
Sources
9 successful brands launched during downturns. (July 23, 2009) . Retrieved Nov. 7 2010, from http://www.businesspundit.com/9-successful-brands-launched-during-downturns/.
Caron, S. 14 big businesses that started in a recession. Retrieved Nov. 7, 2010, from http://www.insidecrm.com/features/businesses-started-slump-111108/.
Cortes, D. (July 20, 2010) . Why not start a business during a recession? Retrieved Nov. 7, 2010, from http://ezinearticles.com/?Why-Not-Start-a-Business-During-a-Recession?&id=4699691.
David. (June 3, 2009) . Should you start a business during the recession? Retrieved Nov. 7, 2010, from http://www.mytwodollars.com/2009/06/03/should-you-start-a-business-during-the-recession/.
Palmer, K. (June 9, 2009) . 5 reasons to start a business in a recession. Retrieved Nov. 7, 2010, from http://money.usnews.com/money/personal-finance/articles/2009/06/09/5-reasons-to-start-a-business-in-a-recession.html.
Startups among the ruins: How 10 companies launched during the great depression. (March 23, 2009) . Retrieved Nov. 7, 2010, from http://www.allbusiness.com/economy-economic-indicators/economic-conditions-depression/11817455-1.html.
Strengel, G. (May 19, 2009) . The benefits of starting a business during a recession. Retrieved Nov. 7, 2010, from http://www.ventureneer.com/vblog/benefits-starting-business-during-recession.
Sugars, B. (Feb. 25, 2009) . Top 10 reasons to start a business in a recession. Retrieved Nov. 7, 2010, from http://www.entrepreneur.com/startingabusiness/startupbasics/startupbasicscolumnistbradsugars/article200342.html.
Why to startup in a bad economy. (Oct. 2008) . Retrieved Nov. 7, 2010, from http://www.paulgraham.com/badeconomy.html.
Zahorsky, D. (Jan. 12, 2009) . Should you start a business in a recession? Retrieved Nov. 7, 2010, from http://sbinformation.about.com/b/2009/01/12/should-you-start-a-business-in-a-recession.htm.
Companies are making budged cuts and laying people off in record numbers. That’s likely the reason that you lost your job and can’t find another one with comparable pay. But like any successful entrepreneur, you know how to take something negative and use it to your advantage.
[1] Caron, S. 14 big businesses that started in a recession. Retrieved Nov. 7, 2010, from http://www.insidecrm.com/features/businesses-started-slump-111108/.
[2] Startups among the ruins: How 10 companies launched during the great depression. (March 23, 2009) . Retrieved Nov. 7, 2010, from http://www.allbusiness.com/economy-economic-indicators/economic-conditions-depression/11817455-1.html.
[3] Startups among the ruins: How 10 companies launched during the great depression. (March 23, 2009) . Retrieved Nov. 7, 2010, from http://www.allbusiness.com/economy-economic-indicators/economic-conditions-depression/11817455-1.html.
[4] 9 successful brands launched during downturns. (July 23, 2009) . Retrieved Nov. 7 2010, from http://www.businesspundit.com/9-successful-brands-launched-during-downturns/.
[5] Cortes, D. (July 20, 2010) . Why not start a business during a recession? Retrieved Nov. 7, 2010, from http://ezinearticles.com/?Why-Not-Start-a-Business-During-a-Recession?&id=4699691.
[6] Cortes, D. (July 20, 2010) . Why not start a business during a recession? Retrieved Nov. 7, 2010, from http://ezinearticles.com/?Why-Not-Start-a-Business-During-a-Recession?&id=4699691.
[7] Cortes, D. (July 20, 2010) . Why not start a business during a recession? Retrieved Nov. 7, 2010, from http://ezinearticles.com/?Why-Not-Start-a-Business-During-a-Recession?&id=4699691.
[8] Cortes, D. (July 20, 2010) . Why not start a business during a recession? Retrieved Nov. 7, 2010, from http://ezinearticles.com/?Why-Not-Start-a-Business-During-a-Recession?&id=4699691.
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