Starting A New Business During Economic Hardship

The current economic downturn has made life difficult for many businesses. This may make you think that it would be a bad time to consider setting up a new business but this may not be the case. Careful planning and the use of existing facilities can help reduce start-up costs. It is useful to consider the following points.

Simple Is Best

The usual advice when starting a new business is to ensure that you have found a niche market and this has worked very well for many successful businessmen including Tunde Folawiyo. In times of economic hardships it is also better to look for a business idea that is simple. Many businessmen have started a business because they themselves had a need for that product or service. This can make it easier to devise your business plan as you will have personally experienced the gap in the market. This will make you perfectly qualified to devise a product or service that will fill that gap and meet customer needs.

Use Existing Resources

Initial costs to start a business can be very high and it can be difficult to find financing when the economy is struggling. It makes sense to try and reduce start-up costs wherever possible and using existing resources can help. Laptops and smart phones are extremely common and most will have the necessary business technology. Existing laptops can be used for video conferencing to reduce phone costs and can be utilized for internet marketing to spread the word about your new business. This would reduce the need to pay for marketing.

Inventive Financing

It can be difficult to get a bank loan for a business start-up in times of economic hardship. Successful businessmen such as Tunde Folawiyo know that sometimes you have to be inventive to be successful in business and financing a new business is no exception to this rule. It may be possible to meet most start-up costs through credit cards. Asking customers to pay in advance can also generate enough of a cash flow to cover some of the costs. One of the main benefits of financing your new business in this way rather than seeking financing from investors is that you will retain complete control over your business and will not have to answer to anyone else.

Sell Yourself

As the owner and creator of the business, you will be its recognisable face. It is vital that you can sell your ideas and your vision for the business. This applies whether you are talking to customers, potential investors or new customers. It is important that you can demonstrate a strong sense of self belief particularly when the economy is struggling. If you don't believe in yourself then neither will others.

It Will Get Better

Starting a business in times of economic hardship may not seem like the right time but the economy will improve. So even if things are difficult at the start you can console yourself with the thought that you are dealing with the worse times immediately and things will improve as hopefully your business will grow along with the economy.