There is no question that the 2020 pandemic has turned the world upside down economically: Millions are out of work, businesses have lost clients, and almost everyone is looking for ways to save money.
If you have considered starting a business, you may think this is the worst time to launch your startup. However, that actually isn’t the case!
There are several major advantages to launching a business in the middle of an economic downturn (as backwards as that may sound).
History Is On Your Side
- Revlon Cosmetics,
- Microsoft Corp,
- Trader Joes,
- Burger King,
- Sports Illustrated.
What do all these businesses have in common? They were all started during a United States economic downturn and are now thriving empires.
And your idea could be next on that list – if you’re ready to take a chance.
Here are a couple tips for starting a business during an economic downturn.
Take Advantage Of Technology
Money may be tight during the pandemic, but technology has found a place to thrive.
Learning and using technology to your advantage during this time can only advance your business. From taking full advantage of video conferencing and webinars to social media networking, there are a plethora of ways you can utilize technology to advance your entrepreneurial ambitions.
It’s never been easier to start a successful business from the comfort of your living room, so leverage your time stuck at home into getting your idea off the ground.
Capitalize On Available Resources
There are plenty of free or low-cost resources all around if you know where to look.
For example, using your family, friends and professional network to help fill specific needs based on their areas of expertise can help you avoid the common entrepreneurial pitfall of trying to do it all (and making a million mistakes along the way).
However, family and friends are not the only resources to consider. Hiring an attorney can help navigate your legal side of launching a business.
Although this is not a free resource, the upfront investment can actually save you significantly in the long run by ensuring everything is set up properly from the start.
Hiring Best Practices
Only hire employees or contractors for necessary positions and consider candidates that can wear many hats.
As an entrepreneur, you cannot put the whole company on your shoulders – that is setting yourself up for failure.
Take an introspective approach and realize where your strengths and weaknesses lie, then make hiring decisions based on where you need help the most.
With unemployment rates skyrocketing during an economic downturn, you should have a much larger pool of qualified candidates looking for work as well.
Get The Word Out
Again, take advantage of social media. People have more time to kill than ever, and a lot of that is spent scrolling through Facebook, Instagram, Twitter, Tik Tok, etc.
Utilize as much free advertising as you possibly can, and remember that word-of-mouth is still an incredibly powerful tool when it comes to achieving mass publicity when starting a business.
Social media is another concept that just takes time to understand, and there are plenty of tools and resources available to help you learn.
And if you need advice, remember that you probably have a friend or relative who understands every platform under the sun.
Pitch Your Idea
Although an economic downturn would logically seem like the worst time to find backers, it is actually one of the best times for investors to start branching out.
During an economic downturn, investors would prefer to cut a check toward new businesses that will be designed to succeed in the current conditions with a much higher chance to grow. Existing businesses, even if they were successful before, are riskier since they will likely continue to suffer losses until the economy recovers.
If you are an entrepreneur looking to start a business in the middle of this pandemic, reach out to Bridgeford today.
Brit Young helped start a company in the middle of the 2008 economic downturn – a few years later, the company went public and he was ringing the bell on New York Stock Exchange.