The video discusses the psychological advantages of starting a business during a recession, highlighting less competition and unique opportunities for those willing to take the leap of faith when others are not.
What this video covers
Recessions and dips are always a great time to start a business. There is going to be less competition, there are going to be less people that are taking that leap of faith, and also there is going to be less competition when it comes to raising money. Why? Because then, money is drying up, there are going to be less businesses, too, and people are increasing their expectations on some of those new businesses that are launching.
So, this is a good opportunity to get buttoned-up and to get out and make something meaningful because, typically, in moments of crisis, businesses typically contract, so by going the other way, like going against the current, that’s essentially what people are not anticipating, that’s what people are not doing, and how it’s going to give you an edge.
In some of those crises, recessions, depressions, there have been great businesses that actually started. Like, in the last crisis, for example, when the market turned around, we had incredible businesses like Dropbox, Airbnb. So companies that many of you today are actually using and that are worth billions of dollars were actually started during a really tough economic time.
There is also less competition. When you’re thinking about marketing alone, think about it. All those people that were supposed to compete against you that had cash and were able to spend, now they’re going to be contracting.
Now, you’re not going to have as many people trying to bid or to demand certain things because they’re not going to be investing the money. So, here, you have less competition, less people targeting your audience, the people that are going to potentially buy your product or your service. So it’s a really good time to get out there and get the word out there – Brandshare, Mindshare, you name it.
It’s much cheaper, also, and this is a great reason. The labor is going to be cheaper. There are going to be more people looking for jobs. Also, there’s going to be the cost, 2for, starting up. You’re going to get discounts left and right, so all around, it’s going to be much cheaper. Before, people were probably increasing the prices given the demand. Now, there’s not as much demand, so this is your opportunity to capitalize on that and to try to optimize the cost – whatever it’s costing you to get your product and your service out, and to maximize the benefits and the ROI, the return on your investment that you’re getting back from those operations.
It also gives you time to perfect before the next boom. What this means is that you get to optimize your funnel, you get to see what’s working on the product, what’s working on the marketing. Then, when the next market comes, when it goes from bear market where everyone is losing money to bull market where everyone is winning money, then you’re going to be able to ride the wave better than anyone because while people were contracting, you were essentially optimizing everything around your business and ready to scale and ready to ride that wave better than anyone else.
Urgency can be a great reason. If you’re developing, for example, a product or a service that is going to be addressing specific needs of those that are perhaps not having such a good time during a downturn, perhaps there’s going to be more urgency on your end to buy that product or service from you. So that urgency is something that you can absolutely capitalize on.
You’ve seen this from people that are lending money, or people in those industries that could help with optimizing, with working remotely. Basically, things that are going to come or are going to pick up when people are trying to reduce the cost, to reduce the burn rate of how much they’re spending on the business, and so forth.
