4 factors that determine whether the project has a future, even if it starts during unstable times
The best time to start new projects is during economically stable times. This opinion is shared by most startup analysts and it is completely understandable – it is much easier and calmer, the risks of failure are minimal. However, by adhering to this strategy, the entrepreneur can miss great opportunities, says John Boynot, digital media consultant and CEO. According to him, a period of uncertainty, such as the current one, is the best time to start a new business. The expert lists 4 factors through which you can choose the perfect moment.
1. Whether the idea will be sought
“In the last few months, it has become clear how big the difference can be between what is desired and what is real. Due to the complex international situation and the restrictive health measures, we are facing a problem with domestic production and delivery of the necessary goods. “Circumstances like the ones we are experiencing now are forcing businesses to change in order to emerge from the crisis,” Boynot said, adding that we are not safe from economic shocks in the future.
With this in mind, the entrepreneur should answer the question: Is my business idea useful? Will it be sought? It is possible that the idea, born right now, is closest to consumers. In this case, it is good to apply it as soon as possible, and if you decide that it will not work, wait for more favorable times.
2. Can it be adjusted easily
If your idea does not fully meet the needs of consumers, think about whether you are ready to correct it and how it could happen. If minor changes are enough, you won’t have to wait for the economy to recover, and there’s nothing stopping you from starting to implement it now. And to assess how big adjustments are needed, think about the cost, resources, time and sources of funding, the expert advises.
3. Do you have a secure investor?
The world’s first business lesson is, “When an idea has no financial solution, it has no solution,” so it’s clear: funding sources are paramount. Finding an investor could be a serious problem due to the outbreak of the economic crisis, but Boynot recalls that many companies were created during a deep recession. Google was founded in the late 90’s by Larry Page and Sergey Brin, and today has about 115 thousand employees, FedEx is from the 70’s, and if we go back in time: Disney was founded in 1923, and the history of IBM and General Motors dates back to the beginning of the last century. These companies start with a rather modest budget and succeed thanks to financial support from businessmen who want to restore the stability of the economy.
If you prove that your project solves urgent problems of society and creates new jobs, you will be able to attract sources of funding interested in supporting small businesses.
4. Do you have talented employees?
Finding talented and hard-working programmers, designers, copywriters to join your project is a key factor. Given the difficult situation at the moment, you can hire them on a freelance basis to work remotely, and when the idea develops and your company gets back on its feet, you can fully add them to the team.
Another very important piece of advice: “If you think you’re not ready to start, don’t be afraid to admit it,” says Boynot. “Use this moment of uncertainty to better analyze your capabilities – you will have a better chance of success.”