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Thinking about giving entrepreneurship a whirl? When everyone seems to be cutting budgets and laying off people by the thousands? You'd have to be a little delusional to think launching a startup now sounds like a good idea, right? Well, if you're like the founders of Microsoft, Apple, Groupon, and Slack, you could find that swimming against the tide pays off.
All these founders started their companies during a recession. The mid-1970s and the Great Recession of 2008-2009 weren't exactly full of blue skies, but that didn't stop these visionaries. The likes of Bill Gates, Steve Jobs, Andrew Mason, and Stewart Butterfield took their businesses to the top by offering something new. Or, at least, by serving a well-known need in a different, brilliant way.
While I won't say launching a startup in a down economy is a cakewalk, trying it isn't crazy. Business opportunities still exist, even when there's uncertainty in the air. And the strength of your ideas and inner drive will push you forward more than anything else. Here's why I believe becoming an entrepreneur isn't foolish in this economy.
People prefer to bet on a sure thing. What are you more likely to do if you think the deck's stacked against you? Play your cards or hold back? Waiting until they believe they're dealt a better hand is what most individuals will do.
But waiting to get in the game gives someone else an opening to swoop in and win the hand. Down economies tend to create opportunities because many businesses stop investing in growth. They stop because they get anxious.
For example, some of the people I'm advising right now are overthinking everything and considering cutting costs. In reality, sometimes the greatest opportunity exists when the other companies are pulling back. Marketing budgets are often the first place leaders look to cut. This can be a massive mistake and can cause a company to backslide.
Would-be startup founders can identify areas that aren't being focused on and go after them. These businesses can gain momentum and ultimately fund future growth by getting into a solid sales and marketing position when others are being complacent. Reduced competition can be your startup's opening to gain the support you need to succeed.
Becoming successful as an entrepreneur means going into business for yourself. But you can't do it alone if you've got growth in your plans. Even in the startup stages, you'll likely need the expertise of others by your side. Whether it's a trusted partner or a small ambitious staff, a company is built by more than its founder.
The thing about down economies is that people and companies tend to rush to layoffs. In 2023, layoff announcements from big names, including 3M, Whole Foods, and Deloitte, just kept coming. The general consensus was that there must be trouble ahead for everyone if household names like these were letting employees go.
However, layoffs from the big dogs can be a silver lining for entrepreneurs. All those pink slips create amazing talent pools and people who are grateful when they're given new opportunities. Talented professionals who get laid off tend to be appreciative. They don't focus on whether the grass is a brilliant, emerald green -- they work hard because they don't want to be laid off again.
Furthermore, they don't take the chance to work for you for granted. One of my current employees was laid off four years ago, and I scooped her up immediately. Now she leads one of our divisions. I don't think I've heard one complaint from her in those four years. She's always focused on giving feedback aimed at making things better.
Startups usually have less overhead than big corporations. You don't have offices scattered around the globe. Your corporate headquarters could be in an unused bedroom at home or a shared office space. Headcount is also likely small at this stage, and you may not even be paying yourself a full salary.
Having lower expenses means your startup may be able to offer solutions at more attractive prices. When people are trimming budgets left and right, your offer could stand out. If your solution solves the same problem at a lower price, your market may be more willing to try it out.
This environment gives you an in with leads you might not be able to pitch to otherwise. You'll gain ground by establishing the relationship and showing how your company can serve their needs. I've learned growing market share is about building trust and loyalty. But you need to lay the foundation and prove yourself first. Leveraging people's increased willingness to switch to other solutions is one way to do it.
The World Economic Forum notes that startups create a global market value that's nearly equal to the GDP of a G7 economy like the U.S., Germany, or Japan. Startups create jobs and expand substantially in their initial years of operation, helping to spur economic growth.
While a single business won't lift an economy out of a recession, history shows turbulent times create openings for entrepreneurs. I wouldn't let economic conditions hold you back as recessions come and go. With persistence and an eye for opportunity, you can achieve your startup dreams.
A refreshed look at leadership from the desk of CEO and chief content officer Stephanie Mehta
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Why You're Not Wrong to Try Entrepreneurship in This Economy
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11.12.2023
Becoming a Voice of Choice for Women
5 Crazy Weird Products From 2023
Harry's Handsome Contribution to Men's Mental Health
How This Startup Went Viral on TikTok After Accepting Only Beans as Currency
How to Train Your Brain to Better Accomplish Your 2024 New Year's Resolutions
What to Do When Low Turnover Becomes a Problem
How Jennifer Garner Teamed Up With an Organics Star to Tackle the 'Every Mom' Problem of Easy, Fresh Kids' Foods
Thinking about giving entrepreneurship a whirl? When everyone seems to be cutting budgets and laying off people by the thousands? You'd have to be a little delusional to think launching a startup now sounds like a good idea, right? Well, if you're like the founders of Microsoft, Apple, Groupon, and Slack, you could find that swimming against the tide pays off.
All these founders started their companies during a recession. The mid-1970s and the Great Recession of 2008-2009 weren't exactly full of blue skies, but that didn't stop these visionaries. The likes of Bill Gates, Steve Jobs, Andrew Mason, and Stewart Butterfield took their businesses to the top by offering something new. Or, at least, by serving a well-known need in a different, brilliant way.
While I won't say launching a startup in a down economy is a cakewalk, trying it isn't crazy. Business opportunities still........
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