Startups can find opportunity in the bad market adversity

Dr Prem Digital Healthcare Marketing

Bad economy a term way too demeaning, has some positives as well. Well, for the startups at the least. Bad economy that belittles the very existence of the financial structure surprisingly offers opportunities for the startups. Doom and gloom, bailouts, layoffs, bankruptcy, one would consider it a horrible time to start a business! Yes, this anticipation is completely wrong. In fact bad economic condition can be a great time to start a business and here the reasons justifying this argument.

Lost opportunity cost

lady working

Before we come on to the fact that the opportunity cost is lost in the bad economic situation, let us first understand what the opportunity cost is. Opportunity cost is the cost of the next best alternative foregone. Instead of working on a low pay with no job security, the wiser option is to work for your own self. Your time and energy will be diverted to something with more potential ability in the near future. If you are talented and have always wondered the idea of a startup, it is a great option to start with in a bad economic condition.

More talent available

Corporate retreats

In a bad economic situation, companies lay off a large number of their employees, even the star performers. In case you are starting a company, it is a great opportunity. You get an opportunity to hire the lost stars. In a bad economic situation, the market is flooded with good people, just dig in and employ them.

Quality stuff at cheap prices

staff

Layoffs mean newly empty desks in empty offices with phones that still work, grab this opportunity. Look for such subleases. In a bad economic situation, Companies dump stuff into used furniture stores and there are not a lot of buyers, you become one. You should have the appropriate eye for converting hurting times into opportunities.

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Hand tied customers

low budget

When budgets are tight, people need to get stuff free. Lack of budget prevents customers from buying anything else but your product, including competing products that are better than yours in many regards. This comes as a huge advantage for startups.

Now is the best time

securing Funding

Make it your agenda to start today and not tomorrow. It helps to take a leap. If you do not start now you won’t start ever. If you do not start now you, will be tied with the same job for a lifetime and always be dependent on others for salary, retirement options as well as health care. Many great companies were born at a time when everyone thought the world was falling apart, but these challenges were taken as opportunities.

Recession is the best time for startups. Startups generally need to raise some amount of external funding to begin with, and investors tend to be less willing to invest in bad times, the idea is to convince them for investing. Everyone knows you are supposed to buy when times are bad and sell when times are good However, this also needs implementation. Fortunately, the idea to make start ups recession proof is to run it as cheaply as possible. This is indeed the key to success and you never know what awaits you in the near future.

Bad times are not as bad for the startups. Thus all the startups should take these times as the opportunity to do something big and making it large for themselves.

Summary

Bad economy is not a bad option if you are considering starting a company. Bad economy may prove out to be an added advantage for the same owing to the higher availability of labor and talent that would otherwise go waste.

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