Now is the time to prepare for the upcoming economic recovery. There are plenty of advantages to starting a business during an economic downturn, but there are even more to having an established, healthy business during an economic upswing.
What Kind of Business?
Recently, David Pollard wrote an interesting online article called Ten Important Business Trends. One of the business trends he noted was getting back to basics. "That means companies that are depending on a rebound of frenzied consumer spending after each recession will not fare well, and those that help customers to be self-sufficient, to connect with each other, and to learn, those which have a reputation for quality and attentiveness, and which get most of their business by word of mouth, will flourish."
During a recession, people have to do more with less money. That mindset may remain when disposable income increases. Pollard states that there will be "more do-it-yourself home and car repairs, purchase of clothes and other durables that are well-made and timeless, more self-made entertainment and recreation...less tolerance of low-quality goods and services, [and] preference for locally-made and hand-crafted products..."
Pollard's vision is very much in line with a business called reMade USA, a design company that takes used leather jackets and upcycles them into one-of-a kind leather bags. The owner, Shannon South, states on her website, "I see reMade USA as part of a back-to-basics, holistic approach that is in line with the way I try to live my life."
During an economic downturn, you can find significant savings on goods and services for your business. When demand lowers during a recession, there are deals to be had on everything from office rental and supplies to advertising. And as a new customer, you can bargain with providers for even bigger discounts.
You'll also have fewer competitors during an economic downturn. That gives you the chance to build a solid customer base and establish yourself in the market before the economic upswing and resulting flood of newcomers.
The experts are already predicting economic recovery in late 2009-early 2010. Americans are feeling the pinch of the current recession right now, but the tide is turning. When the economy picks back up, you'll want to have your business poised to catch the upswing. Prepare for success—start your business now and reap the rewards later.