Undeniably, 2023 will be remembered as a year fraught with difficult trials, as individuals and businesses alike experienced unprecedented hardships. The pandemic of the Coronavirus wrought untold damage on our lives, causing many people to cope with lessened work hours, and in the most devastating cases, total loss of employment. To protect their perpetuity, companies were forced to make challenging choices, including disinvestment, the reconfiguration of objectives, and shifts in strategy. The far-reaching and tremendous impact of this global crisis is still difficult to fully comprehend.
Initiating a business in the prevailing economic climate of uncertainty may seem unwise at first glance. However, is it really so? Commencing a company during an economic downturn could be considered risky, but upon examining the situation, there may be several advantages. I have first-hand knowledge in this area since I launched my own firm, Works, that focuses on offshore and nearshore software development, in 2009 when the world was in the midst of a severe financial crisis.
When my business partner, Paul Azorn and I, decided to launch our venture, we had doubts in our minds. However, looking back almost a decade later, I am confident that we were correct to follow through with our plans. Moreover, the existing economic climate has presented us with several advantages during our early stages, which is the reason why I believe that other entrepreneurs should also take the risk and establish their own enterprise.
Myriad Challenges Demand Innovative Solutions
In these unparalleled times, it is evident that our world is intricate and filled with numerous challenges. Despite the consequences of the pandemic, the pre-existing complications remain prevalent. Consequently, it is probable that various areas of our lives, such as healthcare, education, and entertainment, necessitate modification to keep up with the constantly evolving future requirements. This could be an opportunity to introduce novel and creative products and services that could fulfil these demands.
Although the phrase has been overused, the idea that “difficulties provide opportunities” is indeed accurate. My partner, Paul and I, swiftly realized that corporations required affordable software development solutions. We were able to fulfil this need remotely, thanks to the expertise of IT experts from Latin America. The key factor in achieving success is to anticipate the additional demands that may arise due to a particular challenge, and then search for a suitable resolution.
Ample Talent Pool Availability
Every thriving business owner will acknowledge that their organisation’s prosperity is essentially interlinked with the competence of their staff. Even the most meticulously designed strategies and plans will falter if the appropriate people are not in the suitable positions. Start-up companies encounter an even greater hurdle in procuring the most exceptional and skilled individuals, as they have to compete with larger and established businesses.
In times of crisis, like the current pandemic, companies are often compelled to take drastic action, including closure, layoffs, or a temporary halt in hiring. This can have a favourable consequence since it implies that there is a larger pool of highly proficient potential recruits to choose from for future hiring endeavours. In addition, it can have a positive effect on the economy as some of these individuals may establish their own companies. Therefore, recruiting exceptional talent during a crisis can be easier and offer a favourable outcome for both employers and the economy.
The Obstacle of Obtaining Financing has its Advantages
It is natural to have a brilliant idea but feel uncertain about financing it, particularly given the present pandemic. While it is true that investors and venture capitalists are more cautious about making investments in this climate, they have not stopped investing altogether. Rather, they are more meticulous in their selections.
The beneficial cycle that emerges when customers receive state-of-the-art, superior products will urge business owners to pursue greater heights of perfection. This will then make your proposed company’s budget and financial schemes more pragmatic and feasible, putting emphasis on streamlined functionality as opposed to grandiose opulence.
Customers Endure Forever
When Works was established in 2009, corporations were initially hesitant to invest in new software programmes. This was largely due to the widespread belief that it was unnecessary to invest in development when existing alternatives were still accessible. Consequently, we had limited data to operate with. While we could understand the reasoning behind this decision-making, it was also clear that a market existed for our services. Fortunately, it was not too arduous to locate them.
Indeed, it was our team that discovered the potential opportunity. We were able to persuade several corporations that investing in software development during the economic downturn would give them an edge over their competitors when the economy rebounded. Initially, it was difficult to appease our initial clients, but we endeavoured to confirm our worth and prioritised quality over quantity. As the recession continued, we attracted an increasing number of new customers, and this enabled us to expand further. I must emphasise that if your product or service is innovative and genuinely helpful, there will always be a demand for it.
Entrepreneurs, Ready Your Engines!
Frankly, entrepreneurs setting out in commerce have never had it so good as they do today. Setting up a business entails a lot of trial and error and learning from blunders. Naturally, this may seem more feasible when the world is not undergoing a crisis; however, as I have exemplified, this can be utilised to your benefit.
It is evident that entrepreneurs are vital to a flourishing economy, particularly during times of crisis. Established companies are the bedrock of any successful economic system, and their prosperity depends heavily upon the ideas and perseverance of entrepreneurs. Rather than fretting or anticipating the end of this pandemic, we must unite to overcome it. Do you have any strategies in mind for accomplishing this? Is your business ready to resume operations?