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The Entrepreneur During Tough Times |
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Written by Stephen L. Melnick, Director, Keystone Innovation Zone, Soutside Bethlehem
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In recessionary times, as more and more people find themselves out of work, the idea of starting your own business often appears to be very desirable. The idea of never being laid off again and being in control of your own destiny becomes very attractive. How viable is that dream? In today’s market, does it make sense to even think of starting a new business venture? Mark Vitner, a senior economist with Wachovia Bank Corp. has been quoted as calling the belief that small businesses fare poorly in economic slowdowns, "a common misconception" that is not true. I believe that during “tough” economic times, any entrepreneur should understand the difference between fear and caution. Basing your business strategy on fear is a recipe for failure. Using caution, however, can mean that you will find a strategy that will work for your business.
Business Tip For Entrepreneurs
- Understand your business. When times are good, consumers throw cash around. When consumers become choosier, you must spell out your value to them. Explain why you are innovative and superior to your competition.
- Do not overreach. A common mistake is to think that you need to reinvent your business, or offer a breakthrough new product, to recapture market share. If times are rough, you cannot really afford to take a chance on a new product or service until you have focused on the core attributes of your business. Do not give up your research and development, but keep it in the proper ratio to your core business.
- Be a visionary. Real leaders are not discovered when times are good. A business owner's true colors show through when the chips are down. If your employees' morale is slumping from a declining market, find innovative new ways to inspire them. Unveil a new marketing initiative, and show your dedication to making the business successful. A positive, confident attitude is what employees truly need to help them work harder and more productively in stressful economies.
Challenging economic times often spawn opportunity. Good Luck!
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