Welcome Guest

Businessex.Com
Home Article Starting Up Idea  Cashing in on the slowdown

Cashing in on the slowdown

If the slowdown blues are catching up on you as you are sacked from your job, donít be disheartened as this might be the right time to fulfill your entrepreneurship dream. However, is the slowdown really a good time to start a business?

Tags: slowdown, Limited resources, Walt Disney, Hewlett-Packard Corporation, Microsoft Corporation, business schools, investment, Cheaper resources, Creative marketing

BY Entrepreneur  |  Oct 13, 2009 comments ( 0 ) |

A slowdown is actually a great time to nurture and incubate a small company. Limited resources lead to creative thinking, thoughtful expenditures and better understanding of various aspects of a business. Walt Disney, Hewlett-Packard Corporation and Microsoft Corporation were all started in a recessionary economy. Primarily there are two reasons why a person should start a business during a slowdown. One is that there are lesser jobs in the market and it does not make sense to enter the job market now. It is usually said that there are no opportunities in recession, but that is not true. This period has its own opportunities which need to be catered to. Also those companies which can operate with minimal resources are the one which will be successful. Here are a few reasons that can lead your way to entrepreneurship.  

Aid from business schools
In a contracting job scenario, India’s business schools are going an extra mile to encourage entrepreneurship among students by offering space to work from, free accommodation on campus, mentoring services, access to experts, assistance in reaching out to investors and even seed capital. The Indian School of Business (ISB), XLRI Jamshedpur, Indian Institute of Management (IIM), SP Jain Institute of Management and Research, Mumbai are a few names in this category. 


First mover advantage
In a scenario like today, people put on their thinking caps whether it is a good time to start or not. But some ideas cannot wait and need to be acted upon that very moment. If not started when required they become old by the time they are brought out in the market, especially if it is related to the technological domain. So, the payoff for acting fast in a bad economy will be higher than for waiting. Microsoft's first product, a Basic interpreter for the Altair was exactly what the world needed in 1975, but if Gates and Allen had decided to wait for a few years, it would have been too late. 

Get the right people
As a lot of people are laid off during a slowing economy, people who come to work for a startup will be incredibly committed. There are many skilled people who are at this time willing to negotiate on terms and are looking for a secure job; such people should be got on board.  

Funding options available
For an investor, recession should be the best time to put his money to use. Upbeat start ups are more scalable which means lower investment now and greater profits later on. Great ideas and perfect execution in a business will surely attract investment. Larry and Sergey were the first investors in Google and it was this step that paved their way to success.  

Cheaper resources
At the time of recession, the resources are not only cheaper but are also readily available. Labour, raw materials, office space just about everything is available at your disposal. You also have the opportunity to outsource the non-core activities as it helps to get off the ground and move out of the start-up phase. 

Clear cut ideas
A receding economy nods at a brilliant idea and scoffs away a bad idea. This helps you to know whether or not your idea is viable. Also if it fails, it may lead to fewer losses as compared to the amount of money that would have been invested in a normal state of affairs. 

Customer is king
The saying consumer is the king should be put to use especially in a downturn, as you should produce only what is really needed by the customer, as it is only that product that will really do well and not something that is not needed. Arvind Singhal, Chairman, Technopak Advisors always wanted to do something of his own, but after his management studies he got busy with a job. It was only after he got sacked that he thought of setting up his own company. He says, “It is never a good time to start a business in recession unless the business itself is directly focused on recession-led opportunities such as low priced goods and services that may otherwise not exist or some new niches that may emerge.” 

Creative marketing
Getting more publicity and saving money at the same time can be of great benefit for a start up. One can look for partnering with start up marketing firms who are looking for business and are willing to provide more at lower costs. All realms of marketing can be used for the advantage of your company.  

Establishing your company
Starting at a time when everything is at a low, can give you enough time to bring your business to a firm ground till the economy recovers. You can carry out enough research, innovate and further improve on your business. Instead of sitting idle and waiting, you can put your time, money, creative skills and resources to their best use.  

Be your own boss
In case you don’t like to be led and wish to lead the way, this is your golden chance. Get hold of it, and make it big for yourself.

 

Please add your comment

Rating
Not readable? Change text. Enter the characters as seen on the image (case insensitive)
  Notify me of follow up comments via e-mail   Subscribe for daily newsletter

Related Articles

Making of a financial planner

BY Entrepreneur

Financial planning is one of the fastest growing professions in the world but as far as India is concerned there is a huge demand-supply gap. Wi...

Entrepreneurial Stamp

BY Entrepreneur

Quite a number of times in our career path we are tickled by a desire to start our own enterprise. But such instincts are suppressed again and again b...

Making of an entrepreneur

BY Entrepreneur

Entrepreneur: Sameer NigamProfile: MD & Principal ConsultantCompany: StratBeansAn Indian Institute of Management, Ahmedabad (IIM-A) and IIT Kanpur...

Incubators Nurture Your Startup

BY Entrepreneur

You may have a professional qualification from a top notch college, armed with the expertise that can land you in a cushy job. However when it come...

Choose your business partner well

BY Entrepreneur

The idea of sharing profit might not sound interesting but a good business partner is a boon for an entrepreneur. From sharing responsibilities to inc...

5 mistakes that most start-ups make

BY Entrepreneur

It is alright to make mistakes and learn from them. But it is always better to learn from other peoples’ mistakes. And when it comes to starting...

Business Entities for Startups

BY Entrepreneur

So finally you have mustered all the courage to start your own business. And now a hundred decisions await your approval stamp. One of the most import...

Get Into Business with Partners

BY Entrepreneur

Startups often shy away from starting their business with partners.  Each may have their own peculiar reasons, such as insecurity, the pain of pr...

What is a Winning Business Idea?

BY Entrepreneur

Are you going to start a business because someone else has been very successful in the same kind of business?  Or are you going to start a busine...

Bottlenecks to Success

BY Entrepreneur

Starting a business is a risky venture; this is a common notion regarding entrepreneurship. Everyone wants to be an entrepreneur but when it comes to ...

Are You Riding a Rudderless Boat?

BY Entrepreneur

Starting a business is like deciding to ride a rudderless boat in a stormy sea. Though you start with high determination but once you have started ...

Being a Part-Time Entrepreneur

BY Entrepreneur

Launching a startup requires a great commitment of time, energy, financial resources and most importantly compels you to leave a job that provides a r...