Warren Buffett once said, “It is wise to be fearful when others are greedy and greedy when others are fearful”. Many people I’ve spoken to have felt that with a recent economic downturn that they may have missed their opportunity to launch their new business. I believe that couldn’t be further from the truth, it’s actually a great time to go after a new opportunity. This is especially true as the coronavirus quarantine begins to end.
Consider these points –
1) When everyone else is downsizing, it is an opportunity to pick up their resources cheaply.
Consider all of the equipment which can be bought secondhand from stressed companies, for a fraction of what they paid. Labor is also less expensive during leaner times, and you can acquire top talent more easily.
2) It will force you to build to your company to operate on limited resources, proving your business model.
You can’t spend money don’t have. If you start your business in lean times, you’ll build your processes and strategy around those resources. This puts you at a significant advantage against competitors who build their processes around the expectation a large amount of capital would be available. It’ll force you to be lean, and to deliver value immediately in order to survive.
3) Once the economy improves, with your proven business you’ll be first in line to take advantage of it!
Investors love proven business models! If you’ve shown your company can weather the storm, they’ll jump at the chance to invest in you when the time is right. Which could be sooner than you think. Remember that a lot of investors have pulled their money out of the market looking for a better or safer opportunity. Be that opportunity!
4) Competition is limited and in chaos
When you enter the market, some of your potential competitors may be downsizing or going out of business. This presents an opportunity to acquire their customers, and find new ones with less impediment.
5) People want to get back to normal
If your business can help people to return to their normal lives, then they will be drawn to it and want to do business with you. There are a lot of new problems out there right now, which are just waiting for someone innovative like you to provide a solution. You can help to lead them back to prosperity.
6) There will never be a perfect time!
Let’s face it, if you keep waiting for the perfect moment to launch your new business it’ll never happen. Regardless of market conditions, you can succeed or fail – it’s up to you! There will always be that someone who says it’s not the right time – entrepreneurs say “Let’s start today, not tomorrow!”