June 1, 2020
Starting a business during a crisis may in fact be one of the best times to kick it off.
Crazy? Like a fox.
Here are four reasons why it makes sense:
- Trial By Fire — Opening a business during a severe crisis will test your business plan and commitment to the business. Businesses that are started during bull markets are often less disciplined. The mistakes they make and the gaps in the business are able to be brushed over with the free flow of money in the system. A poor business climate exposes all the cracks.
- Olympic-Size Talent Pool — During a downturn in the economy, there is a higher supply of qualified employees for your business, because they are unemployed, underemployed or concerned about the viability of their employer. The pool of highly qualified employees for your start-up is unprecedented, now. Who knows, you may even find some work for deferred payments in exchange for an equity stake in the business.
- Fatal Flaws — During challenging times, when pressure is applied in the business climate, a few things occur. The businesses that have flaws are exposed, and are permanently damaged or cease to be in business. Conversely, the strong double down and create even more value for their customer base and increase their market share. New business possibilities reveal themselves in the gaps that occur between the two models.
- Setting The Pace — The expectation of longer hours and less profits are the expectations when you start any business. Starting a business in a crisis will set up expectations for this to be the “the pace.” Keeping this as the pace will carry your business through the crisis and pay in dividends when the bull market appears.