Why Now May be the Best Time to Start a Business

If you’ve always wanted to start a business, you might think now is the worst time to strike out on your own, given the current economic downturn.  In reality, times like these have proven to be a great time to start a business!

What’s the biggest reason people people think they shouldn’t start a business during a recession:

They believe it is too risky.  They think they have more financial security by working for their employer, who already has an established customer base, than by starting to build a customer base of their own.

Ironically, I believe the exact opposite is true.  Here’s why:

The key issue isn’t the customer base, it’s the motivation.  And no one is more motivated to make sure you succeed than you.

When you work for someone else, you put your faith in the hope that they are doing the right things to grow the business and bring in customers.  When you work for someone else, you put your livelihood in the hands of your boss, who, believe it or not, might not care about your future as much as you do!

During a recession, when thousands of people are being laid off every day, which is more risky:

  • Putting all your eggs in one basket by trusting your employer will keep exchanging your hours for dollars?
  • Spreading your eggs around by taking your destiny into your own hands and building your own base of loyal customers?

When you work for someone else, you really have only one customer, and that is your boss.  If you lose him or her as a customer, you’re done at that company.

When you run your own business, you have dozens or hundreds or thousands of customers.  If you lose one, you’re not done-for, you just find another one.

An article entitled, 14 Big Businesses That Started During a Recession, explains that many well-known and successful companies were started during economic downturns:

  • Hyatt Corp.
  • Burger King Corp.
  • IHOP Corp.
  • The Jim Henson Company
  • LexisNexis
  • FedEx Corp.
  • Microsoft Corp.
  • CNN
  • MTV Networks
  • Trader Joe’s
  • Wikipedia Foundation Inc.
  • Sports Illustrated
  • GE
  • HP

Why did these companies succeed?  The article explains:

“Usually it’s because the founders recognized a market need and filled it. Identifying that need — whether it’s related to entertainment, travel or even streamlining how businesses operate — is the key to any thriving enterprise, regardless of the economic climate in which it begins.”

So, if you’ve always wanted to start a business, if you know a need in the marketplace, and if you  have the know-how (or can get the know-how) to fill it, then why not take that first step toward being your own boss today?  One excellent resource that will help you is How to Become Successfully Self-Employed.

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