Defying the Recession to Launch a Biz
Defying the recession to launch a biz (Click on image to read article)
I really like this article because it starts out by accurately listing some of the most prominent problems a would-be entrepreneur would face in this incredibly tough economic climate. But it emphasizes a point that I couldn’t agree with more; the need to be bold and make the first move towards self-employment in a tough economic climate. A poor economic environment with high levels of layoffs has a tendency to spark new life into once novel and risky business ideas, as the desperation for income generation becomes ever more prevalent.
But according to Tim Kane, who is an economist who studies entrepreneurship at the Kauffman Institute, “Self-employment rises in recessions, but entrepreneurship doesn’t necessarily rise”. This distinction between self-employment and entrepreneurship is one that I had never given much thought to, as I, just like many others had always made the assumption that entrepreneurship and self-employment went hand-in-hand. The article corrects this erroneous assumption by stating, “Entrepreneurship, in the classic sense, means starting a venture that eventually grows into a bigger company. Many of those going solo now will never expand their business beyond a sole proprietorship”.
In my humble opinion, one of the greatest business related advice that you can ever receive can be found in this article. According to Sloan of the StartupNation, “You need to be conservative with spending, and aggressive as hell with marketing.” According to him, this will have the end result of building your business on a solid foundation, which can only help you further as the state of the faltering economy takes a turn for the better.
Ultimately, this article emphasizes the importance of sticking to the fundamentals of business: minimize spending and costs, maximize profits through extensive marketing and sales activity, and staying vigilant, no matter how tough the economic situation may be.
