Of late, you would have probably come across people concerned about starting a new company. They would be showing their reservations citing the ostensible uncertainty in the world. They would be talking about the risk involved in beginning a new business. Nowadays, people are killing their long-cherished dream of having the boss of their own business. Why? They are under the impression that voluntarily quitting a job won’t do any good to them, it’s just too risky at such testing times. They have a fear that if their brand-new company fails, it won’t be the right time to struggle and search for a new job.
Do you agree with what such people think? If yes then it is high time you look at things from different perspective. There is a need to look at the astonishing opportunities and the lower barriers to entry for starting a company at the moment. This is the opportune time to get access to people and talent that you would not have got before this.
To start a New business right now is the best time as technology futurist kevin Kelly would say. Many potential creators are apprehensive unfortunately. This is not circumstantial. According to the Kauffman foundation, between 1978 and 2012, nearly 44 percent of new companies declined in number.
What is startling that the best opportunities to start new companies are available in recessions and unstable periods. Billion-dollar startups like Uber, Airbnb, and many others were founded partially during the 2008 Financial Crisis as the changing requirements of market.
The same phenomenon applies to the present days as well. It offers unfair returns to budding entrepreneurs and once-in-a-lifetime opportunities. One of the benefits include an environment in which customers are more enthusiastic to try new products and services — frequently out of necessity. Apart from this, they get enlarged availability to talent and people at negotiable and lower costs.
Enlarged access to people and talent
Design, product, sales talent and engineering can be extremely hard to recruit and eventually close during boom periods. Usually talent is scarce in the market and the best talents often ask for fees that can rapidly bankrupt a budding startup if they don’t show value from their recruits rapidly.
Due to lessened marketplace demand, many well-known companies and startup companies have fired their employees. And overall salaries have also dropped for once in-demand situations due to greater market dynamics. For entrepreneurs, this has opened up people and talent acquisition opportunities. This would offer the ability to access talent that is vital to early-stage growth. Otherwise, they would be tempted by larger salaries or more steady opportunities.
Also, to lure probable recruits, entrepreneurs can bank on substitute compensation schemes such as equity because the bonuses and cash compensation become rarer.
Time to negotiate fixed costs
The fixed costs to begin a new firm have come down significantly for more than 20 years. However, they are still comparatively high for early stage entrepreneurs. Before their business ever generates the first spate of revenue, entrepreneurs are often faced with high initial upfront expenses. This applies for real estate leases, SaaS and other capital and operating expenditures.
Real estate costs often decline considerably in testing times. Moreover, landlords are more than willing to offer fascinating deal terms to close a deal, including office makeovers and more flexible lease terms.
Apart from this, cost centres such as individual-contracting and SaaS services may be more open to negotiation and flexible business terms as well. All this help to reduce the price of beginning a business and permits entrepreneurs to deploy capital resources into hiring and product in place of fee-based services.
Acquiring customers is a fundamental challenge to starting and growing a new business. Being a costly plan, this will usually comprise urging consumers to try a new product option or category or switch between brands.
Even while being armed with remarkable capital war chest, a number of entrepreneurs usually fail at this process. Customer-acquisition costs may reduce significantly in the present environment. Customers may be more willing to try new products and services or even shift brands from their usual choice on account of the economic requirement and variations in routine.
Customers may espouse different products and services as new behaviors and routines come to the fore. For acquisition, this offers plenty of new opportunities. A slew of macro-economic challenges is presented by leaner and meaner times. This makes right now the best time to start a new business, absurdly but logically.
Primarily, this is due to greater access to negotiable fees, people and talent and a greater willingness amongst customers to try new products – sometimes due to inevitability.