Inflation, supply chain shortages, and talk of an upcoming recession have left many feeling that now is the worst possible time to try to start a new business. However, successful serial entrepreneur John Steuart says that there are many reasons why 2023 could be the ideal time for an entrepreneur to launch a new venture. He explains that many highly successful businesses started during economically challenging times and offers insight into how an entrepreneur can boost their odds of success.
As John Steuart rightly points out, many tech companies are laying off employees. This is especially good news for a small business owner looking for a business partner and/or employees. There is a pool of qualified tech experts who know about cybersecurity, online retail, web design, and more that one can pick from. Given the fact that there has been a worker shortage in many industries, aspiring entrepreneurs would do well to take advantage of this time to find good people.
Furthermore, John Steuart points out that demand in certain industries doesn’t wane even during a recession. At present, he notes, high-growth categories include fitness, finance, travel, health, and pets. People want to be happy, and they want to keep their pets happy even during economic difficulties. Steuart notes that services in these fields tend to be in higher demand than products. This is good news for new business owners with a limited budget, as it typically takes less money to start a service-based business than a product-based one. Alternatively, this year is also an ideal time to consider buying a small business or online venture that is already at least moderately successful. Doing so can generate higher and more stable returns than stock market investments. What’s more, the new business owner does not have to deal with the initial struggle of trying to bring in the first customers and generate brand name recognition.
Naturally, there are still challenges to overcome when setting up a new business when a recession appears to be just around the corner. John Steuart urges would-be new business owners to do careful research before setting up a new business or buying an existing one. It is important to make sure there is demand for the product and/or service and that the demand will remain steady or even grow in the coming years. One should know their target audience and how they will appeal to potential customers. There are costs involved, even when starting up a new service business, and the current credit crunch means a business owner can’t count on financing from a local bank or lender. Even so, Steuart explains, these obstacles can be overcome. The current situation can be ideal for starting a new business, and would-be entrepreneurs would do well to carefully consider the market and choose a line of work that has the potential to be profitable long-term.