Got a business idea up your sleeve, but holding onto it until the economy looks up? After all, you’d be mad to start a business during a recession wouldn’t you? Perhaps not. According to one marketing expert you might actually be better off striking while the recession is on. Some of the world’s most well known companies were launched during a recession - could yours be next?
Derek Williams of the Marketing Donut believes now could be the ideal time to start a new venture. He said: “In many ways the ground is most fertile now. There’s nothing to stop an innovative new business starting at the moment.”
With his business experience, Williams should know: “This is my third recession,” he says. “And I have realised that I am at my best during a recession. I am always looking for ways to do things differently and better.”
New ventures that break the mould and offer something new stand a good chance of succeeding, according to Williams. “Businesses must have a unique selling proposition,” he cautions. “You’ve got to be more innovative and create value for your customers. Look and see how one customer might lead to another.”
So, why is now a good time to launch a business? Some understandably cautious people might need some convincing… “Firstly, start-up and running costs are falling”, says Williams “Everything is negotiable at the moment. It’s a good rule when starting a business to keep your fixed overheads as low as possible. You can do that by shopping around for the best rental terms for premises. There are some great terms on managed business spaces at the moment. A new venture can be up and running very quickly.”
The way that some existing businesses are tackling the downturn could also create opportunities, he adds. Many firms are busy downsizing and some, it seems, are simply riding out the recession. “I think many sales people have stopped selling because they don’t think they’re going to get a sale,” says Williams.
In addition, some consumers have money to spend. “Unemployment is rising fast,” says Williams. “But at the same time, low interest rates are putting a lot of money back into the pockets of those that are still working.”
For businesses looking to borrow, these low interest rates are very appealing too. On the other hand, getting finance is no easy matter. “Banks are under the spotlight. They are pretty conservative and are only comfortable with what they know”, comments Williams.
However, he points out that at the same time there’s also a lot of help and support for small firms and new businesses from services such as Business Link at the moment.
It’s worth remembering that many well known and successful businesses famously launched in previous recessions. Will this recession produce some of the business successes of the future?
There are just a few business success stories from previous recessions:
- Burger King
- CNN
- FedEx
- The Jim Henson Company
- Hewlett-Packard
- Microsoft
- Dyson
Sarah Wray
Jun 1, 2009
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