The economy fluctuates, it is the nature of the beast. Even though a good economy may give the appearance of sure-fire prosperity, launching a business is always a gamble. In our current times with the economy taking a hit at every turn, it’s totally understandable to find yourself questioning if this is the right time to launch.
Here are 4 reasons why launching a business in a “bad economy” can work in your favour:
1. Less Competition
You are not alone in thinking that a bad economy is bad news all around. Why launch now when so much is in shambles and the uncertainty is so intense? It is a valid concern and a common thought-process, but it is also counterintuitive.
Bad times can offer you a massive advantage, because the playing field will no longer be levelled. Established corporations are shutting down or too busy trying to manage their own survival, while most newcomers take a “sit and wait” approach out of fear. This can position you as potentially the only one capable of providing a particular service, or at least one of very few.
2. Sustainable Customer Acquisition Cost (CAC)
Since the playing field is more open to you in a bad economy, your CAC is reduced. With less companies battling for ad space, your marketing costs are considerable cheaper than they would be during a good economy, which can offer you a more sustainable path to greater reach.
3. Affordable Alternative
During difficult economic times, customers and clients are downsizing and trying to keep costs as low as possible. Emerging businesses by their nature offer more affordable rates and services in comparison to big companies, which means that you have the potential to be the affordable alternative that most people need.
4. Bigger Hiring Pool
An unfortunate consequence of a bad economy is job loss. For a lot of companies, cutting down the workforce is part of the course. Should you have the capital for it though, these companies’ loss can be your gain.
There is bigger pool of talent available to hire during a bad economy, where most people are prioritizing job security over anything else. If you can ensure that security, you have the potential of finding people that can further your company’s goals and propel you that much further ahead.
Launching a business is always a gamble. Even though there are advantages in launching during a bad economy, in the end your attitude and drive are what can assure your path to success. Fear and risk will always be present, but for those bold enough the time to act is now.