MAKE THE MOST OF TROUBLED TIMES.

 

After serving on a recent panel with three local entrepreneurs at our local American Marketing Association luncheon. I thought some of the themes and ideas that were discussed at that lunch belong on this blog, because I firmly believe that small businesses, privately owned businesses,  - businesses started, owned and run by entrepreneurs, are the most dynamic source of growth and stability in our country today.

 

Out of that discussion, I came back to my office with six good reasons to be entrepreneurial right now. The first three reasons were in my last post here. The final three reasons that we discussed are:

 

#4—There may not be any direct evidence for this yet, but it stands to reason that if people are not investing in the stock market or in real estate, then there is money “on the sidelines” as they (used to) say on Wall Street.  So maybe it’s not a bad time to go looking for angel money.  Venture money will be tougher, however, because existing venture funds are reserving large blocks of their capital to support their existing investments.  You will be sledding uphill (even more than usual) to try to tap into a venture fund with a new idea.  Think “friends and family” and the local investors that you can sometimes reach through your professional advisors.

 

#5– Many successful businesses have been started in times as bad or worse than this.  I call this the “Frank Sinatra effect.”  In other words, “if you can make it now,  you’ll make it anyhow.”  This isn’t just wishful thinking.  If you start your business in difficult conditions, you are a lot less likely to make some of the mistakes (mostly of excess) that brings down small companies.  Overspending on things that really don’t matter, expecting business to come your way, as opposed to going out and getting it, etc.  Basically if you are the kind of person who would start a business now, you are probably highly motivated.  Channeled correctly, that motivation will build a strong base and a lean operation, and you will really prosper when things improve.

 

#6–It’s a good time to be small.  It’s a tired analogy, but it’s easier to turn a speed boat than an aircraft carrier.  Your new business will be small and nimble, and you will not have the baggage of old ways of doing things, obsolete mission statements, embedded costs of long term contracts, etc. to prevent you from adapting quickly to changes.  Take full advantage of this and outmaneuver your larger competitors.  Even a relatively small business with 50 employees will find it difficult to reposition as quickly as a solo or even a 10 person organization.  Just the internal communication process of getting everyone clear on the new direction in a company with dozens of employees can be a daunting task.  You won’t have to waste your energy on that if you are small.  You can just do it.  That allows you the luxury of making and recovering from mistakes quickly.  Your mistakes are your best teachers, as long as you see them for what they are and move on quickly. 

 

I could go on, but I think you get the picture.  Of course it still takes the requisite gut check, a buy-in from your family, and objective input from your trusted advisors.  In my next post, I’ll discuss some of the critical steps that you cannot skip if you expect to succeed and survive.  No they don’t all involve lawyers, but I will certainly show you how smart use of legal counsel can greatly enhance your prospects for success. 

 

Here is a link to an article in Harvard Business Review in a similar vein: .http://ow.ly/1QcG

 

BTW, hat tip to my fellow panelists:

 

Ed Gooding, Owner of The Merge Computer Group

Connie Hom, Owner of Buckingham Greenery

Darrell Jervey, Owner of Worth Home & Commercial Products

Tags: Business Week, cap-and-trade, economy, entrepreneur, opportunity, SBA, small business, Small Business Administration, TARP, taxes, Troubled Asset Relief Program, Washington Post

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