Nose to the Grindstone: Entrepreneurship in Times of Recession
The best short term projections for the global economy are sobering, at best. The year 2008 left Canada with record-breaking rates of job loss, the likes of which have not been seen since the 1991 recession.
The story is the same with our American and British comrades. And with the Canadian federal government in a state of (incredibly expensive) upheaval, nobody’s quite sure where it’s all going to lead us.
On top of all this, our own hometown has recently been crippled by a full city transit strike. Ottawa is an expansive, sprawling city that it would take days to traverse from one end to the other on foot. Unfortunately, most of the students, lower middle class and working poor who can no longer get to work are being laid off, fired, or otherwise left without any income at arguably the worst time of year for such a setback.
Yes, the newspapers are filled with doom and gloom.
Discretionary spending is down, of course… or is it? For big-ticket and luxury items, perhaps. I don’t know anyone who is planning on going out and buying a new SUV or diamond studded watch any time soon. The housing market is not the best industry to be positioned in at this exact moment in time, either. But overall, it’s seldom as bad as chicken little may have you believe. Opportunity, as they say, never shuts the door without opening a window.
Certainly, sitting in a corner crying about the sky falling is not going to benefit anyone… except for your current and potential competitors, that is.
Out of times of challenging economic conditions and widespread downsizing, we are seeing more and more enterprising individuals striking out on their own. And that is precisely what the economy needs.
More hard-working people taking that leap of faith means a stronger economy both locally, and globally.
Some entrepreneurs even consider a declining economy to be a competitive advantage. It may seem counter-intuitive, but new ventures in such times receive more attention both from potential funders, and from customers.
You just need to play your hand thoughtfully.
Context always has a say in the outcome of our actions, but we do have the ability to control the extent to which it can either hinder us, or help to propel us forward. So many businesses are hunkering down, laying off employees, panicking and praying that things will swiftly go back to the way they were.
Unfortunately (or fortunately, depending on your mindset), progress is a train that has no brakes. You either ride with it, or roll down the side of the hill as it leaves you behind.
Smart entrepreneurs see the needs that arise in such times. They consider how one of these needs might mesh with the skills they possess, and they then take it upon themselves to try and meet that need.
Think about an economic recession at its most primary level. Loss of jobs means a need for employment agencies, personal image consultancies, life coaches, resume writing services and job skills training companies… to name just a few.
Those of us who service the corporate sector have no lack of opportunity, either. Downsizing means that more and more companies are going to be contracting out for independent accounting services, personnel, public relations, sales, marketing services and more. Hiring an external service provider is particularly attractive to companies during a recession, since they do not need to cover costly overhead like sick leave, pensions, vacation pay and health benefits.
For those of you who are already in business for yourself, I can offer two simple words of advice: work harder. Get your nose down, and do everything you can to inspire and maintain the confidence of your clientele. You’re not afraid of a recession. Your products and services are as good or better than they ever were. Your company is strong and robust. In a climate where buyer confidence is at a record low, this will all trickle down to the customer, and will benefit you even more than it would normally.
Sage Media itself has never been busier than it has been in the last couple months… all in an apparently dire economic climate. This is largely due to the fact that people know we do good work, in an industry where reliability and quality are somewhat hard to come by.
Building that initial confidence is the hard part… maintaining it over time is as easy as simply being the best at what you do. If you consistently strive for excellence in your work, keeping customers becomes a much less arduous task.
One of the biggest mistakes companies can make in tough economic times is to hastily shotgun the general market in a desperate bid to grab and hoard what they can, while neglecting the people who are already on board. It is far more profitable to maintain and cultivate an existing customer base than it is to invest all of your energy into finding new ones.
That said, you’ll still want to broaden your reach. If you have a small local or even home-based shop that makes gourmet chocolates, for example, consider taking your product to new, carefully selected markets. Get in touch with catering companies (who may also be looking to outsource), hotel event coordinators, or wedding planners. And get your butt in gear and start selling online. Sure, your website does a good job of telling people where you are and when you’re open, but so many stop there when they could be doing so much more. The world is (literally) your marketplace. Don’t limit yourself.
The bottom line is that strength of will and intelligent strategy will prevail in tough times. As always, people believe what they can see. If you read the market properly and position yourself to meet the rising and enduring needs of your customers, and if you inspire confidence in those customers through a higher quality of product, exceptional customer service, and a strong professional image… well, we all come out the winner.
