The Chinese word for Crisis is two words conjoined – danger and opportunity. Now this is technically untrue, but it has been repeated so much in the Western world, it has echoed its new lore into existence. One can see why – 57% of Fortune 500 companies have been founded in bear markets or recessions according to a 2009 study by the Ewing Marion Kauffman Foundation. Why might this be? Well when people start a business, there are usually a few common elements that coalesce during an economic crisis. This article will focus on three, good ideas, funding opportunities, and a strong team.
Every business owner took a flyer on an idea that added value to people’s lives. An idea that solves a problem makes life easier and or is valuable to large enough groups can be elevated to be a business. They say necessity is the mother of all inventions for a reason. During an economic downturn, look towards what needs are being underserved or unaddressed. If you can improve a process, make a better mousetrap, or fill a space for a unique product or service then you are on your way. Crises breed opportunity, 2020 then, is full of opportunity. Social Distance Measures have created a new space or sector no one was following 2018. Being able to pivot and adapt with the times quickly allows the small, nimble, entrepreneur to get a jump on these opportunities and ideas that can add value.
Despite a common belief, the funding opportunities for new, small, and medium-sized businesses are abundant, even in a financial crisis. In fact, seeding opportunities always exist, and in a financial crisis is no different. Venture capitalists and angel investors are looking for the next Lululemon. Federal and provincial Governments continue and even expand funding for small businesses to jumpstart economies, especially in a financial crisis.
Finding a good team and creating a winning team is difficult in the best of financial times for small and medium businesses. Hiring, in a economical crisis itis easier and a ‘buyer’s market’. Recruiting talented and motivated people is always challenging but having a larger pool of candidates is certainly a blessing for entrepreneurs. Through no fault of their own, talented people in all sectors get laid off. This unfortunate event is a windfall for motivated individuals, willing to bet on themselves or entrepreneurs with a great idea. It is a great opportunity to jump in on the ground floor of something that can be much larger than themselves.
The path of the entrepreneur has never been easy. It takes time, dedication, and a whole lot of grit. It comes with growing pains, failure, and a whole lot of crisis management. But like we like to echo, a crisis is a synergy of danger and opportunity. Those who can navigate the danger with grace and perseverance frequently prosper much more than those who work for others. When you decide to be an entrepreneur, call Office146. A free consultation with a business advisor will guide you on how to start, source grant and business stimulus and be a world-beater.