It is no exaggeration to say that 2023 has been a year of immense challenge and hardship for countless individuals and companies. The Coronavirus pandemic has taken its toll on our lives, with many people facing reduced hours or, in the worst cases, the loss of their employment. Companies have had to make difficult decisions to safeguard their future, such as scaling back investments, restructuring objectives and altering their strategies. This has been a global crisis with far-reaching and unpredictable consequences.
Beginning a business in the current uncertain economic climate might appear to be an unwise decision. However, is that necessarily the case? Making the decision to start a company during a downturn in the economy may seem like a risk at first glance, but closer examination may reveal a number of benefits. I have personal experience of this matter, as my firm, Works, which specializes in nearshore and offshore software development, launched its operations in 2009, when the global financial crisis was at its height.
My business partner Paul Azorn and I initially questioned ourselves when we decided to establish our own firm. Looking back nearly a decade later, I am convinced that we were right to pursue our plans. Furthermore, the current economic climate has actually provided us with advantages during our initial stages, which is why I believe other entrepreneurs should also take the plunge and launch their own business.
Numerous Problems Require Innovated Answers
In these unprecedented times, it has become increasingly clear that the world we live in is complex and full of problems. Despite the effects of the pandemic, the problems that existed before are still very much present. As a result, it is likely that many aspects of our lives, such as healthcare, education, and entertainment, need to be adapted in order to keep up with the ever-changing demands of the future. This could provide an opportunity for the introduction of new and innovative products and services that can meet these demands.
Despite the overuse of the phrase, the concept that “adversity brings opportunities” is certainly valid. Paul and I quickly recognised that there was a demand for cost-effective software development solutions among businesses. Thanks to the expertise of IT professionals from Latin America, we were able to provide these solutions remotely. It was a case of identifying the problem and then finding a suitable solution. The key to success is being able to anticipate the additional requirements that may result from a particular challenge.
Increased Talent Pool Availability
Any successful business owner will tell you that the success of their organisation is fundamentally linked to the quality of their personnel. Without the right people working in the right roles, even the most well thought out strategies and plans will struggle to reach fruition. Start-up companies face an even bigger challenge in recruiting the best and most talented individuals, as they must compete with larger, more established businesses.
In times of crisis, such as the present epidemic, businesses are often forced to take drastic measures, such as closure, redundancies, or a pause in recruitment. This can have a positive outcome, as it means there is a larger pool of highly qualified individuals to choose from for future recruitment. Additionally, it can also help to stimulate the economy, as some of these people may go on to develop their own businesses. Therefore, recruiting top talent in a time of crisis can be more straightforward and provide a positive outcome for both employers and the economy.
In some ways, the difficulty of securing funding is a positive.
It is understandable that you may have had a great idea but are unsure of how to fund it, especially in light of the ongoing pandemic. It is true that investors and venture capitalists are more cautious when it comes to making investments in this current climate, but this does not mean that they have stopped investing altogether – they are simply more selective with their choices.
The positive feedback loop that is created when customers are provided with innovative, high-quality products will encourage business owners to strive for even greater levels of excellence. This, in turn, will make your proposed company’s budget and financial plans more realistic and practical, with a focus on efficient operations rather than on ostentatious extravagance.
Customers Are Everlasting
When Works first began in 2009, there was a degree of hesitation amongst businesses to invest in new computer programmes. This was largely due to the prevailing opinion that there was no need to invest in development when existing options were still available. Consequently, we had limited information to work with. We could appreciate the logic behind this decision-making, but it was also evident that there existed a market for our services. Fortunately, it was not overly difficult to locate them.
Indeed, it was our team that identified the opportunity. We managed to convince several businesses that investing in software development during the economic crisis would give them a competitive advantage when the economy recovered. Initially, we experienced difficulty in pleasing our first clients, but we worked hard to prove our worth and prioritised quality over quantity. As the recession continued, we were able to attract an increasing number of new customers, which enabled us to expand further. I would like to emphasise that if your product or service is sufficiently innovative and helpful, there will always be a market for it.
Entrepreneurs, Start Your Engines!
Truthfully, entrepreneurs starting out in business have never had it so good as they do in the present day. Establishing a business involves a great deal of experimentation and learning from mistakes. Of course, this may appear more achievable when the world is not in the midst of a crisis; however, as I have demonstrated, this can be used to your advantage.
It is clear that business owners are essential to a thriving economy, especially in times of crisis. Established companies are the foundation of any successful economy and their success is reliant on the ideas and determination of entrepreneurs. Instead of worrying or waiting for this pandemic to end, we must work together to get through it. Do you have any thoughts on how this might be achieved? Is your business prepared to re-open its doors?