How to Start a Business During the Recession
Open a Business in a Bad Economy
As defined by Webster’s Dictionary, a business or stock is cyclical if its value fluctuates heavily with the economy. While there are many economically proof industries, the majority of small businesses can be defined in some way as cyclical or reliant on the general economy.
Therefore, when the economy takes a dive, many small businesses tend go with it.
It might therefore seem like listening to good sense when a poor economy scares away a potential business owner from opening their own company. But appearances can be deceiving: the economy doesn’t have to be scary to every potential small business owner.
I am living proof as the CEO of a recruiting company whose bottom line is very dependent on the hiring fluctuations both in the U.S. and abroad, as well as on the general health of American business.
Due to the cyclical nature of recruiting, running an executive search firm in today’s economy required me to develop a new thought process and approach to business. While other staffing firms have been going under or downsizing immensely, my company is currently hiring and leasing additional office space.
How am I able to do this?
Below, are 4 rarely discussed tips for those aspiring to successfully open any business in today’s economy.
1. Avoid negativity -
As the owner of an executive search firm, you think that I would be glued to the job reports every week. It is quite the opposite.
I don’t have time for bleak news. We have broken internal recruiting records on the same days as horrific job numbers were reported.
I know that as the CEO, if I don’t remain positive, I risk the negativity spreading through my subordinates.
I’ve learned that the key is to stay around positive, upbeat and successful people.
2. Follow your passion regardless of how bad you think the industry may be
When choosing which business to start, you must only consider those industries that truly interest you regardless of how badly they may have suffered.
Many young entrepreneurs make a big mistake by letting the current economy decide what type of business they should open instead of the other way around.
Good economic conditions are always helpful to the success of a business, but a favorable economy pales in comparison to a passionate CEO.
3. Regardless of the unemployment rate, good employees are hard to find; appreciate them -
Some companies that come to us think that they can get employees on the cheap simply because the jobless rate is high. Reality soon sets in.
Exceptional employees are still exceptionally hard to locate, procure and retain and, despite the economy, the talented are not going to work for free or on a discounted rate.
When you find the right employees, make sure you pay them well and do not allow the current economic situation to justify you treating them with anything less than absolute respect.
4. Keep a stiff upper-lip -
Entrepreneurship is hard; it is often frustrating and, just when you think you have everything in place, a setback comes your way.
The current economic conditions do add to the frustration, but you can’t let outside factors determine your success as an entrepreneur. When things don’t go your way, it is imperative you keep fighting. A bad economy is no excuse for an entrepreneur to quit fighting. There is always light at the end of the tunnel.
Despite the current economic conditions, now can still be a great time to start a business. As young entrepreneurs, we can’t wait for another economic boom like the late 1990’s, we must create an economic boom for our generation. After all, the economy is reliant on us more than we should be reliant on it.