Thursday
Opinion10 Reasons Why You Should Embrace the Recession
Don't be like this broker, embrace the current situation
All this recession talk has more than one startup owner feeling down. Cheer up, it could work out just fine for startups, if you have what it takes and are a bit lucky. Over at Kaljundi.com, I found a list of reasons why startups should love the recession, and I thought it was worth commenting on.
Why would startups benefit from the recession? Think of this: weaker startups have a better chance of making it when things are going good. This makes competition tougher, making it harder for your original startup to be noticed. But, what about when things get bad? Well, let’s call it “trimming the fat”. Weaker startups, those with bad concepts, bad business plans, and bad everything, are going to go down hard. But your startup, the one with the original idea, the business plan, and the right management, has better odds of making it through, and if you make it through, people are going to notice you.
Here’s the list:
- Downturn makes you think. This could sound obvious, but there’s no better time to think on what you could improve than when everything is going down. Take a breath, see what’s good with your startup and see what you can change up. Who knows, you might just come up with a great idea.
- Good M&A opportunities. If you have enough cash to get through next year, and still have some left, then you could consider buying your competitors. Think about it. You have cash, they don’t. If you buy them now, you could clear the field for when things are alright again and you have room to grow quickly.
- Availability of great people. Startups are having to lay people off. Take this chance to bring people into your team who are capable of improving your startup with their expertise.
- Focus on sales. Make sure your product or service keeps selling. Reach out to however many people you know, in order to increase your profits.
- Creative marketing. When times get hard, entrepreneurs get creative. This is the time to do so, thinking up creative marketing plans and other schemes to keep your startup going.
- Focus on long-term product development. Think ahead of the recession, on what you’re going to do after it’s over. Having a plan that includes post-recession gloom is going to make you a much stronger competitor.
- Strong get stronger. I mentioned this before, but if you have a strong startup, it’s only going to get stronger. It’s the weak startups that are going to get eaten up.
- The money is out there. Yes, there’s money left. But not everyone is going to get it. Only creative startups and those who can turn great ideas into business are going to make funding rounds successful.
- Companies built to last. This is closely tied to the business plan. Don’t think about exit strategies yet. Make sure you build up a good business before
- New startup opportunities. If you have a good idea, then it’s the time to try it out. If you make it now, you’ll make it every time.
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Post Tags: Business, Business plan, Marketing, New product development, Plan, Small Business, startup, Startup company
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