Search Gistwealth Blog

Monday 10 October 2016

Why Economic Recession is The Best Time To Start a Business

It’s no longer new that the economic recession especially that of Nigeria has flooded the news headlines like tsunami, yet, best startup for entrepreneurs.


Businesses are going bankrupt, and more businesses are still sinking in the sea-storm of the current economic predicament.
That’s not even the most striking of all news. Do you know what I find most shocking? Federal government debating on selling its assets.
Of course cases are alarming, but hey! Do not panic. This is also a good time for entrepreneurship revolution. The current economic recession in the country presents to you the best time to start your own business.
Oh, I have got you asking me, how?
Well it might surprise you to know that even as many businesses are shutting down as a result of the recession, more businesses are emerging to the top. Now what is the secret behind these variations and what is the difference between the two set of entrepreneurs (those declining and those with massive success under recession)? The answer is simply that the later entrepreneur knows more than the former.
If your competitor is surviving the recession while you are not, it simply means he knows something you do not know or he just know much more than you do, “knowledge is power” so they said.
They (those surviving) know how to run and how to ultimately survive the disaster while you might just know the opposite or less of what they know. In such a situation, it is only natural that you will lag behind, not lead ahead.


Read this quote from Mohammed bin Rashid Al Maktoum, the king of Dubai:
With each new day in Africa, a gazelle wakes up knowing that he must outrun the fastest lion or perish. At the same time, a lion stirs and stretches, knowing he must outrun the fastest gazelle or starve. It is no different for the human race. Weather you consider yourself a gazelle or a lion, you simply have to run faster than others to survive.
Can you see that?
It’s all about survival and in survival your ability to run faster than others is really paramount. So why is this period of bad economy the right time to start your own business? Because at times like this, people learn to survive and keep to it than when everything is flourishing!
You have to run faster…..
Let me tell you something interesting about Microsoft.
This titanic company was founded by the software sultan and world richest man Bill Gates and his friend Paul Allen. That was in 1975, a period of severe hardship in the American economy, yes it was a time of economic recession in USA just like it is today in Nigeria.
During this period, hundreds of businesses closed-up their doors, many businesses and organizations went bankrupt, the rate of unemployment in USA peaked to 9.2%. Can you imagine that?
But it was amidst such storms that Microsoft was founded, by drop outs for that matter, and it survived the hardship, challenges etc. it didn’t die. Today Microsoft is the largest software company in the whole world.
How did they survive the recession?
It was their ability to run faster and smarter. Nothing else!
In fact they had every logical reason to lag behind or fail but they pierced ahead. At that time, the cost of things increased drastically, in USA 1975 a gallon of fuel cost 53 cents while an average cost of bread was 69cents but that didn’t stop Microsoft from achieving success in selling their first product. They declared a yearly sell of $16,005, yet that was just the beginning….
It’s all about survival which can only be attained by running faster and smarter than others.
It wasn’t just Microsoft that was given birth to, at that time of serious economic recession. There were other companies that emerged at the time too. For example Apple was founded in April 1, 1976, a year after Microsoft started.
Even though the then US recession was said to have ended in 1975, but the wounds and staggers caused by the recession which started in 1973 where yet to be fully recovered, the effect of that predicament was still evident and affecting full-grown businesses. Yet, Apple sailed their ship to the journey of becoming a global icon through the storms of an economy weakened by the just faded recession. Today Apple is the most valuable company in the world.
I believe the stories above have inspired you, but now you may be asking me “if I start my own business today, why will I succeed like they did?” of course this is Nigeria not USA, but I am going to tell you why you can succeed if you start your business today in this wilderness of recession, and why now is the best time.
The truth has always been and will always be that history repeats itself.
The good book says “there is nothing new under the sun” wow! That’s more than a fact, it’s a TRUTH. With every economic recession in any country, the result has always been an emergence of creative entrepreneurs ultimately founding world-class businesses or companies. In times like this, the quest for survival often results in more people becoming more creative, consequently shutting down less creative businesses and presenting an opportunity for new and smarter entrepreneurs.
Today Nigeria is suffering from economic recession, but the question is: are you complaining or thinking out of the box for a way to survive?
If you are creatively thinking for a way to run fast and smart to ensure survival, then you will find it! Starting your business today will set you on the path in which the like of Microsoft followed. They did it and made it because their thinking was different from the crowd, you too can do the same if you can look at Nigeria in a different fashion. Ask yourself questions and the answers will occur to you naturally.
The second reason as to why you can succeed if you start your business in this recession is that your business will be stronger. It has been tested and proven that most businesses in the world that started out during the times of great recessions are the ones that stand the test of time, and they survive any kind of competition without getting out of business. Why will yours be different?
Those businesses constitute the highest percentage of the list of the world most successful businesses because they could run fast. Why where they able to run fast? Because they knew the terror they were trying to escape from.
Let me ask you a question, can you compare the speed of a man been chased by a lion to a man chased by dog?
Of course not…
The man been chased by a lion is obviously faster because of the knowledge of that which is after him. He is not like the other man who can decide to stop running and face the dog with a stick or even bare hands… but can a man face a lion? Hahahaha….
That’s the way it happens, in times like this people are forced out of their comfort zones including you. Dozens upon dozens of employees, lose their jobs daily. More people become business minded after realizing it as the ultimate way out. Even in Rivers State, NLNG, though one of the highest paid due to its solely dependence on gas, not crude oil as a whole, was debated to be sold…terrible.
So starting your business now will ensure that your business survive future hardships and competitions because you don’t expect a northern Nigerian born amidst crisis in Maiduguri and other similar states to be scared at the sounds of gunshots in Lagos, why? He was born in crisis, and has been surviving it so it doesn’t shake him.
Like I have said, in times like this people are forced out of their comfort zones. And usually they decide to start their own businesses out of no other option, thereby diving in with less or no experience. But the beauty with recession is that it opens you up to valuable experiences and countless lessons in a short period of time.
If you start your business now, most of the lessons you will learn at times like this are priceless yet very essential for your survival and success in business. They are things that might take you 3, 5 or even 10 years to learn if it were in your comfort zones (flourishing economy).
Do not be found among those complaining about the bad economy, but rather invest your time to learn from good business ideas, think creatively or out of the box, start your business today.
Though the economic recession has put our country in a state of emergency, it is equally presenting to you a golden opportunity for an excellent future. Take a decision now, make the right choice now and you will be on your way to becoming the next big empire in business.
For more tips, kindly follow us on Twitter @gistwealth and Facebook @gistwealth.
Share this gist.

No comments:

Post a Comment