While this might be an odd question to be asking yourself in the midst of an apparent economic downturn, it isn’t as crazy as it might sound. In times of uncertainty, it is possible to make a sound future business decision. It just takes time, research, planning and a willingness to move forward.
First, it is imperative that you take the time to define the type of business venture you are looking to start and/or purchase. If you have already found a business, you will need to confirm to yourself that while the immediate profitability might appear less than you expected, the long term growth opportunities remain viable.
Next you should consider the various avenues open to you for your initial investment capital. If the traditional means of securing capital, such as banks or investments firms, are less available, then consider options that are different, yet equally possible. These types of investors can include;
- Family members
- Smaller venture capitalist firms
- Larger investment firms that might not find a small business an attractive investment when times are booming
If you are considering buying a business that is already up and running, but possibly suffering a bit due to the economic downturn, or current safety restrictions, then you might find you need less capital for your venture. In times such as these businesses with a previously stellar reputation can be a good buy, as they will recover sooner and more quickly than a new business can get started. When considering buying an existing business consider these factors;
- How long has the company been in business?
- Does the business have a reputation for solid profits during ordinary economic times?
- Is it a business that is either necessary or supplies people with an affordable luxury that will remain needed and wanted during a recession?
- Is the owner particularly motivated to sell due to wanting to retire, being burned out or having little interest in riding out an economic downturn?
If your interest lies with starting your own business, then this is an excellent time to look around and identify the gaps in people’s needs. However, the caution is to make sure that the gaps you identify and intend to fill with your new venture are ones that will still be needed once the economy upturns again, or restrictions are lifted.
Lastly, don’t forget about the talent you will need to hire in order to make your business a success. During a downturn some very experienced people, who might not ordinarily be interested in a new business venture, could be available. It is also possible that the talent pool will be more flexible in their salary and benefit demands as jobs may be more scarce. As a result, you may find that your work force options will offer a higher quality of employee with more experience to share.
This is not a time to shy away from making good business decisions. Instead, it is a time to look to the opportunities that might not otherwise be available to an entrepreneur and take advantage of an unexpected chance to thrive!
If you find yourself in need of assistance with this, or any other legal issue, please contact the law offices of Owen Hodge Lawyers. At Owen Hodge, we are always happy to assist clients in understanding the full ramifications of any and all of your legal needs. Please feel free to call us at your earliest convenience to schedule a consultation at 1800 770 780.