Why A Recession Can Be a Great Time To Start a Business
By Jeff Williams
What do GE, Microsoft and Hewlett Packard have in common?
All were launched during times of great economic uncertainty.
I have grown my company Bizstarters through three recessions and I believe that there are many opportunities to launch a successful business during a recession.
The basic needs of both corporations and consumers go on even during a recession. A business with a better solution to a common problem can make a nice profit while his competitors are floundering.
Here are my ten tips for safely launching during an economic hurricane include:
1. Center your business around a problem that is "pinching" a corporation or consumer. And offer an obviously better way to solve that problem.
2. Write a detailed description of how your business will provide superior customer service to each and every customer.
3. Figure out two or more ways to make revenue from what your business offers - don't be a "one trick pony".
4. Get some sales quickly, even if doing so requires that you act as a subcontractor to a larger company or you have to shave your pricing a bit to get your foot in the door.
5. Start from home to eliminate rent and other space-related costs, such as a whole new set of utility bills. Few customers today care where your company is based.
6. Before making any purchase for your business, ask yourself: "Is this the best deal I can find on this item?" Check to see if the item is on sale at a big box store; if an online discount coupon is offered; or if a used version of the same item will work just as well.
7. Promote your business aggressively but cost effectively by using sharply priced online services for such tasks as designing your company's logo, building its website and handling its e-mail marketing.
8. Use local small business contractors to perform jobs for your business that will boost your productivity but allow you to "buy as you need".
9. Look for a marketing partnership with another business that gives you a chance to sell your existing product or service to a new market.
10. Keep inventory of your product down by buying from local suppliers only as you sell, even if you end up paying a bit more for each unit.
Hi Jeff! I loved this article about biz in rough times! In fact my husband and I have just begun our own little biz and I'm delighted to tell you that we implemented a number of your tips!
Our business is called Hide a Heart and there is more info about us on our web site at www.hideaheart.com
Thank you for your great article!
Cathy
Posted by: Cathy Bowles | September 05, 2009 at 10:22 AM