Now is an excellent time to start a new business.
Yes, we are in a down economy, unemployment rates aren't pretty and real estate is like watching paint dry.
But, with the downsides come the upsides.
And now is a great time to take advantage of those upsides.
The loss of jobs is never good, but it does provide a pool of potential employees that will help your business soar.
There are many talented people out there in all industries looking for work.
So, take advantage of the times we are in and put some of this talent back to work.
Be sure to HIRE SLOW.
Go through the process carefully and hire people that will drive your business and thrive on making a difference at the company they work for rather than just making a paycheck.
When you do find the right match, pay them what they are worth.
If not, they'll be gone as soon as a better gig comes along.
It will cost you a great deal of time and money to replace bad hires.
COGS=Cost Of Goods Sold.
Demand is lower and goods are cheaper.
Shop smart if you are wanting to resale goods.
Businesses want to move inventory so buy in bulk where you can.
Always ask for a better price and always shop 2-3 vendors when purchasing.
This same school of thought will translate to almost anything including service industries.
These lower costs will enable you to get into business with less capital and less money involved in inventory.
TIP: If you resale and you are limited on storage, try to place a bulk order but only take delivery on the items needed at the time.
Let the vendor serve as the warehouse.
Also, you may be able to simply commit to a bulk order and pay as you receive what you need.
Lean and mean.
Starting a business in a down economy means you will be forced to run your shop as lean as possible in order to make ends meet.
Why is this so good? Think about the opposite.
In a "fat" economy many times small business owners take their lifestyles to new heights, thus making them dependent on cash flow that seems to be flowing effortlessly.
When that same business sees a reduction in sales and is forced to lower their prices to be able to compete, it often ends in failure.
Profit margins are lower and the only way to save it at this point is to scale everything back, including employees.
Quality suffers, customers are lost...
you get the picture.
Cool fact: If you begin lean and focus on your customers' needs, when the economy does return your business will thrive! When I sold my largest business, I began with no money and ran it very lean.
The result...
no debt to pay back after the sale!
Yes, we are in a down economy, unemployment rates aren't pretty and real estate is like watching paint dry.
But, with the downsides come the upsides.
And now is a great time to take advantage of those upsides.
The loss of jobs is never good, but it does provide a pool of potential employees that will help your business soar.
There are many talented people out there in all industries looking for work.
So, take advantage of the times we are in and put some of this talent back to work.
Be sure to HIRE SLOW.
Go through the process carefully and hire people that will drive your business and thrive on making a difference at the company they work for rather than just making a paycheck.
When you do find the right match, pay them what they are worth.
If not, they'll be gone as soon as a better gig comes along.
It will cost you a great deal of time and money to replace bad hires.
COGS=Cost Of Goods Sold.
Demand is lower and goods are cheaper.
Shop smart if you are wanting to resale goods.
Businesses want to move inventory so buy in bulk where you can.
Always ask for a better price and always shop 2-3 vendors when purchasing.
This same school of thought will translate to almost anything including service industries.
These lower costs will enable you to get into business with less capital and less money involved in inventory.
TIP: If you resale and you are limited on storage, try to place a bulk order but only take delivery on the items needed at the time.
Let the vendor serve as the warehouse.
Also, you may be able to simply commit to a bulk order and pay as you receive what you need.
Lean and mean.
Starting a business in a down economy means you will be forced to run your shop as lean as possible in order to make ends meet.
Why is this so good? Think about the opposite.
In a "fat" economy many times small business owners take their lifestyles to new heights, thus making them dependent on cash flow that seems to be flowing effortlessly.
When that same business sees a reduction in sales and is forced to lower their prices to be able to compete, it often ends in failure.
Profit margins are lower and the only way to save it at this point is to scale everything back, including employees.
Quality suffers, customers are lost...
you get the picture.
Cool fact: If you begin lean and focus on your customers' needs, when the economy does return your business will thrive! When I sold my largest business, I began with no money and ran it very lean.
The result...
no debt to pay back after the sale!
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