Global economy is in hot water now and everybody is worry about their money and future. However, there are still a group of people thinking about whether they should start a business during this bad economy time. Some of them have been planning for so long to start a business but unfortunately the recession happens when they are ready to start one.

So the question is should you start a business during recession?

There are no right or wrong for the answer. According to my research, big companies such as Microsoft and Apple were founded during slow economy. Today, they are the big companies that are making billions of dollar. This has proven that economy and market doesn’t really have that much of impact on a business. But somehow people keep saying that it is good not to start a business during recession. So it really depend how you make your decision.

What Are the Factors that Determine the success for a Business?

Personally, I’m running a business too so I know the requirement to make a business succeed. Yes, economy and market might have some impact on business but they are not the major. For me, there are 5 factors that really determine how success your business is:

1. Yourself, the Founder. How a business can grow is greatly depending on the quality of the founder. It not depends on when you start the business but about who you are. In the earlier stage, you are the person who are building all the system for your business. Therefore, your motivation, knowledge, personality, mindset and action power will greatly affect your business. This is why I always emphasize that a businessman must keep learning and never stop improving themselves.

2. Your marketing plan. Lately I read an article from the Economist Magazine saying that car market in US might be saturate and the sales are expected to drop during this recession period. However, the car manufacturers have a great expectation on the developing countries such as China and India. These countries’ demands on car are increasing at the fastest speed. So this story tells us that no matter what business you are going to start, as long as you know where your market is, you can still make a fortune from them no matter how is the economy. This is all about your marketing strategy and plan. So before you start any business, please study your market properly. This a crucial home works you must do especially in this recession period.

3. The Sales System. Ok, let’s go back to the basic. How your business makes money? Yes, through selling your products or services. Therefore, sales team and system is very important for you and your business. Based on my experience, you must setup a selling system that can assist your sales team to sell to your market. You must know what kind of tools and information can help your sales team to boost the sales and bring more income to your business. Well, as long as you have a good marketing plan, this will not be a big problem for you.

4. Money Management. How to manage your money is very important for anybody and any business. You must know how the cash flow for your business is working and control the ratio between expenses and income. Controlling your expenses to the lowest point but at the same time increase your income to the highest. This is a simple theory in cash flow management. Besides that, you must also understand that what is the time to invest your money into your business. If you read my article, Why Small Business Cannot Grow, you will found that you must invest your money into your business to grow it. The theory is still the same, you must understand how you can invest the minimum money but get the maximum returns from it.

5.People Management. Business is all about people. This is a statement that I heard before and I strongly believe this is true. In business, you must serve your customers(human) in order to get their money. After that, you must know how to control and motivate your employees(human) so that they can run your business properly. Last but not least, you must know how to deal with your competitors and business partners(all is human) to maximize your business growth. This is why people management is very important. This is also about what we call leadership.

Conclusion

Should you start a business? It is all about your mindset and your thought.

If you are worry to take risk and start a business, then you should remain your job or current condition. But if you believe you have been learning so much and well prepared, then you can start a business even at this slow economy period. There are not such thing that you cannot start a business during recession. Just make your decision, stick to it and never regret about it.

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