What do FedEx, Microsoft and General Motors have in common? Apart from being big businesses, they also hold the unique distinction of being started in the midst of economic uncertainty.
While many budding entrepreneurs shy away from starting companies in times of recession, a select few realise that tough economic times present a unique entrepreneurial opportunity. These risk-takers have gone one to create some of the world’s most successful companies – a 2009 study found that 57 per cent of Fortune 500 companies were founded during recessions.
When other entrepreneurs see the current landscape as too risky to get involved in, it gives you the opportunity to make a head start. With so many potential business owners choosing to opt out, competition becomes weakened – this gives you the chance to impress prospective investors who are looking to fund the next big business idea. It gives you unrivalled access to top talent too, as many companies may be letting workers go to cut costs.
So how can you capitalise on this unique business opportunity to launch your start up? Here are some aspects to consider.
Develop your business mission
Clarifying the purpose, sales targets, finance streams and end goals of your company is crucial to see whether your idea can stake a claim in the business world. If your business can offer something that no other company does or can deliver an existing product or service in a more accessible manner, that tends to signify a solid business plan. Ascertain the relevance of your business in the current landscape, considering what your company can offer consumers and how you can communicate its value so they are willing to pay.
Do your research
From potential target markets to industry competitors, it is vital that you engage in some market research before taking your idea to investors. Discover the demographics of your potential clientele through surveys and SEO data, while also gathering evidence that points to a demand for your idea in the current climate. This will not only help you understand how your business can differentiate itself in an already overpopulated market, but it will also clarify the needs and characteristics of your target customers, industry and competitors.
Assess the financial cost
Starting a business isn’t a cheap exercise – it comes with a price. You need to determine how you can cover these inevitable costs in the initial start-up stages before you begin to generate any profit. Consider whether you can finance it alone, or whether you need to raise funding from investors. Performing a break-even analysis is a great way to determine exactly how much financing you will need to get your business up and running.
We’ve only scratched the surface of what it takes to start your own business, so why not accept a helping hand from CROWDSHARE? Our Business Starter package gives you the toolkit you need to continue growing your company into an empire. Register your business on CROWDSHARE today to purchase the Starter package and build your brand today.