What Type Of Business To Start In A Bad Economy? Challenge #3
In the previous two posts I have discussed two important challenges to starting a business, whether it be in a bad economy or a good one. A successful performance strategy involves two things. First, you must determine if you truly have a market for your product or service.
Secondly, you must know how susceptible your market is to fluctuations in economic cycles. Think about it. Eight months ago most businesses were riding high. Things have changed quickly and not for the better. Is what you are thinking of getting into subject to wild fluctuations?
This may seem obvious. Life and business is the study of the obvious. And, too often people overlook the obvious in their enthusiasm or pursuit of the next thing that is going to bring them new wealth and a new life. Small business growth and having a successful marketing business plan is about being a master of the obvious.
Remember, history doesn’t repeat itself. Only those who fail to study history repeat its mistakes. Be a good student of history.
The third challenge to starting your business in a bad economy is to ask: What business should I get into during an economic downturn? You may be saying at this point—this must be obvious. I have answered the first two challenges. I have a market for my service and it is one that has promise during an economic downturn.
What business should you get into? You have the market. You can market to it. But is the business you want to get into honoring “who you are?” This is the one element that is most often overlooked and the one that leads to failure and burnout. Growing small business is not an accident. Small business growth is a function of good design.
Think about it. You have a market for your product or service. And, it is a good market. Yet, the skills and disciplines you must employ to be successful are not part of, or a developed part of your skill set. In the pursuit of the dollar, I have watched more people end up in a wreck because they did not get into a business that honors who they are.
Here’s an example. A man I know opened a one-man auto repair shop nearby. His knowledge and ability to repair cars was extraordinary. His business grew. Unfortunately, his people skills didn’t. He had always been a great technician but had not developed great people skills. In the beginning when his business was small he didn’t feel as pressured.
As it grew he had to spend more time with people and as a result he was repairing cars late into the night. You may say, the obvious solutiion is to hire someone. But, when you are challenged in your people skills and have the attitude that no one can do the job as well as you are you likely to hire someone? No.
The result was that after two years he was out of business and back working for another repair shop. The worst part was that he was broken by his failure. The good news is that he realizes his attitude about people undid him and now he is attempting to do something about it.
Whatever business you start be sure that a lot of that business honors who you are. Yes, there are certain skills you can learn. But, there are ones that even if you learn them you would be better off delegating those tasks to someone else.
Look beyond the startup phase and envision what you want your business and life to look like. If you truly don’t see that picture being accomplished you may be better off looking into another type of business.
Tags: bad economy, growing small business, marketing business plan, performance strategy, small business growth, startup phase