Pursuing a new business idea always feels daunting, especially during a time of economic uncertainty. At the moment, no one is sure how long the pandemic crisis will last, but its economic impact will be felt far into the future. Perhaps your instinct is to wait for things to stabilize before pursuing a new business venture. While that’s understandable, it might just be the wrong move.
Times of crisis are unique opportunities. Many entrepreneurs fail to see this, but the ones that do often emerge on the other side in an incredibly strong position. If you have a new business idea in mind, don’t rule it out because of the recession the world faces. Instead, consider the following reasons to be bold and take action even during the current crisis.
Your Business Will Be in Superb Company
Maybe you’re feeling doubtful about pursuing your business dreams at the current time because people around you seem cautious or hesitant?
Naturally, you want reassurance that the success you seek is possible, even during the toughest of times. If that very reassurance seems to be in short supply, you only need to look to the past to find it in abundance.
Would you be surprised to learn that about half of the current Fortune 500 companies started outside of a typical bull market scenario? Just because the wider economy is experiencing a downturn, it doesn’t doom a business to failure. If you need examples, look no further than some of the most serious setbacks the economy has ever faced, and the businesses that thrived despite them.
Revlon was started way back in the Great Depression. This is the perfect example of how a company not only can establish itself during a tough economic climate but succeed far beyond it.
In more recent times, Airbnb started during the Great Recession of 2008, and Warby Parker was founded two years later. Both companies were able to identify changing tastes in the market and meet them even when conditions seemed dire.
If anyone tells you that you can’t start a successful business during a downturn, remember everything you just read. Businesses founded during a recession can and do experience serious and sustained success. There’s no reason why yours shouldn’t be the next to join them!
Unparalleled Disruption Equals Unparalleled Opportunity
Recessions are times of immense disruption. That’s perhaps never been more true than it is now. The downturn resulting from the pandemic has disrupted far more than just the economy. Across the globe, people’s lives are being changed in ways most of us could never have anticipated even a year ago.
When you think of the large number of people who have been laid off due to the downturn, or who soon will be, your first thoughts might be sympathy and sadness. Take a second and think even deeper. Every lay off represents someone with unique skills and experiences eager for an opportunity. Your new business could provide them with that valuable opportunity, leading to a true win/win.
As well as newly available talent, powerful new technology is abundant. Exciting advances such as 5G are significant opportunities for those with the right vision to make the most of them. Could your business capitalize on a new technological advance?
On a more human level, people are adjusting their lifestyles and priorities as a result of the pandemic. Many experts predict this will cause lasting behavioral change, even if a vaccine is found and things start looking a little more like they used to.
If your business can find a way to meet people’s changing needs and priorities, such as by fulfilling the increased demand for remote learning, it stands a real chance of success even though the macroeconomic situation might not be ideal. In the words of Peter Drucker, “The entrepreneur always searches for change, responds to it, and exploits it as an opportunity.”
Your Resilience Will Be Strengthened
Like all times of extreme stress, global crises have the potential to show you what you’re made of and strengthen your character and resolve. Make no mistake. While things might seem gloomy now, they will eventually get better. America has been through over 40 recessions and always comes out on the other side a stronger and more prosperous nation.
Think of the recession as being like economic strength training. It breaks the economy down before allowing it to regrow bigger and better than ever before.
The same principle applies to you as an entrepreneur. The challenge of getting through a recession can give you reserves of experience and resilience that you wouldn’t otherwise have. Even if your business fails, you will gain valuable feedback to serve you in the future. This will be a valuable resource for you to draw on that people who didn’t take the leap and start a business will lack.
Just as this recession will inevitably end, another will occur at some stage in the future. Your business will eventually have to go through one. Why not face the next recession with the wisdom and experience you gain this time around?
Your Next Steps
Ultimately, there will never be a perfect time to start a business. Any given moment in history has its own set of unique circumstances and challenges. If you have an idea you feel the world is ready for, don’t hesitate to pursue it with everything you’ve got.
I’d like to invite you to seize this moment and take action to move your business idea closer to reality. Based on everything you’ve just read, think about these questions:
- Examples. What lessons can you draw from businesses that started and succeeded in past recessions? Take some time to find real-world examples that you can seek to learn from.
- Disruption. How is the world currently being disrupted in a way that relates to your business idea? Are there shifts in lifestyle or demand that you can identify and exploit?
- Resilience. How will you mindfully pursue resilience during the current crisis, both on a personal and a business level? Are there proactive steps you can take to boost your mental resilience and overall wellness?
Finally, if you’re looking for some inspiration or ideas that might work well during the current crisis, consider the following.
- Consulting. During times of uncertainty, people are looking for guidance. Could you serve a defined group of people and help show them the way forward?
- Education. The current crisis has accelerated the existing trend for online learning. Could you create a course and share your skills and wisdom with the world?
- Comfort. There will always be a need for entertainment and enjoyment, especially when the world feels rough. Providing entertaining books, music, or other forms of art are valuable ways to serve humanity right now.
Just because the world is facing a time of challenge and recession, you don’t need to put your dreams on hold. If there’s a business idea burning bright inside you, now might be the right time to make it happen. And it might be exactly what the world needs.