With the UK economy continuing to tread an uncertain path, it might seem the last thing you want to do is to set-up shop on your own. The threat of recession and a lack of confidence in UK businesses in general is probably enough to put off even those with the necessary skill, ambition and capital to launch their own start-up.
Yet, as economic experts have pointed out time and time again, times of economic downturn are, in fact, the ideal time to establish a new company. There are several reasons for this:
• Take advantage of people's desire to save
During times of economic strife, customers become far more careful with their money. If you are entering a crowded marketplace as a start-up, it is quite possible that you can minimise your overheads in a way larger, more established competitors cannot. Being the ‘cheap alternative' is a huge advantage when people's wallets get light.
• Take advantage of high unemployment
While nobody likes to see unemployment figures rise, a high level of joblessness presents an opportunity to the new start-up. With so many qualified and ambitious people looking for work, the talent pool is much larger from which you can choose your employees.
• Take advantage of decreased prices
Everything – from office furniture to rent to workforce – costs less when the economy is in trouble. By setting up your business at this time, you can purchase all the essentials of your workplace for a fraction of the price then if you waited for the economy to boom again.
• Take advantage of a depleted field
Start your company during the boom-times and prepare to fight tooth and nail for position in an arena filled with powerful competitors. When money, and credit, is not so easy to get your hands on, a good half of those competitors, regardless of your industry, are likely to disappear.
• Take advantage of a slow market place
A weak economy slows things down across the market place. In such an atmosphere, a dynamic young start-up is a real attraction. See the lack of activity in your field as an opportunity, not a disadvantage.