.Roaring Mouse

My friends and I discussed the title topic the other day, and we tried to identify reasons for and against starting a business during this economic downturn. What we discovered towards the end of our discussion was that although it may not seem intuitive, starting a business now could actually be a good idea. Here are the reasons why this may be a good time to say hello to entrepreneurship.

Motivation – If you are unemployed and having difficulty finding new employment, chances are that you are extremely motivated to take control of your own destiny because (i) There simply aren’t any jobs out there for you and/or (ii) You swear that you’ll never allow someone else to determine your professional destiny.

Talent -With the sweeping, industry-agnostic layoffs that are taking place these days, there is probably no better time to take advantage of the fact that there is a large number of talented people who are looking for employment. Chances are that they’ll be willing to accept less than what they’re accustomed to earning to do the same job.

Lower Expenses - The sad reality is that business is down for most people, but out of that grim fact comes an opportunity to procure the goods and services you need for your company for less money. As a decreasing client base intensifies competition, companies are more likely to make concessions, provide discounts and add ‘bonus’ goods and services to secure your business.

Discipline - What better time to force yourself to be disciplined in all your decision-making than when times are hardest? When cash flow is not as free as in times past, increased financial rigor is crucial to starting and growing your business. The discipline that you instill now will always serve you well, making you more efficient and more prudent in your choices in future.

Timing – Economic downturns are part of the natural business cycle, and there’s a strong likelihood that your business will start to hit the upswing in the economy as your entrepreneurial efforts start to mature. While trying to time anything precisely in the business world is a little dicey, the aggregate improvement in the economy over the span of the next 2 or 3 years should bring a corresponding return that’s favorable to you.

This entry was posted on Thursday, February 5th, 2009 at 4:03 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.