subject: Why Now Is the Right Time to Start a Small Business [print this page] Why Now Is the Right Time to Start a Small Business
Savings on new equipment investments
During an economic slowdown, many businesses are looking to improve their sales results. When you start your own business, you can make use of this in your favor. Often, you will be able to get better deals from these firms than you would if economic times were significantly better. You may also be able to get a tax break from the purchase of new equipment if you start your business now, which probably will not be the same once a broader economic recovery takes place. Equipment investments might not make you more revenue, but doing so at the right time can cut business expenses, which is always a smart decision.
Your own work experience
During difficult economic times, many companies cut back on the number of workers in their ranks. This forces remaining employees to do more with less, and often to perform the work of multiple employees in order to remain employed. One positive side effect of this is that past companies you have worked for may have already prepared you for the rigors of starting your own business. In addition to instilling a stronger work ethic, many companies may have helped you by asking you to perform different functions from other occupations. This fits in well with an entrepreneurial mindset, which requires you to be at least partially proficient in a variety of skill sets.
Access to human capital
In any economic downturn, there are two different ways of looking at the employment data. One emphasizes the unemployment rate, how many are out of work, etc. The other way involves recognizing that the loss of human assets from other firms creates incredible opportunities for savvy businesspeople who can successfully identify, recruit, and motivate the right people. Since higher unemployment rates also mean there are more highly qualified people to choose from, and at lower initial wage rates than during good economic times, this can be an enormous boon to someone starting a new small business. Once the economy recovers, however, the opportunity disappears again.
Therefore, since you can benefit from making new investments now, leverage your own work experiences, and have access to more (and better) potential new coworkers and employees, there really is no better time than the present to consider starting your own new small business.
Copyright 2010, by Marc Mays
Marc Mays is the creator of http://www.myplatinumparachute.com/, which helps first-time small business owners obtain the critical skills needed for their small business success.
