Carpet Cleaning Equipment & Truckmount Specialist Australia

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Is It A Good Time To Start A Business?

Start-BusinessAbsolutely! Don’t believe it? Find out how even in this economic doom, you could start a business and do well. In fact, this is probably the right time to start your business.

A large number of Fortune 500′s & major corporations started during some of the worst times in economic history. Despite the ‘Great Depression’ (1920’s – 1940’s) companies such as IBM, 20th Century Fox, General Motors, Gillette, General Electric, Hewlett Packard and FedEx were started and flourished. In more modern times both Microsoft and Apple corporations were started during the oil crisis in the late 70’s.

Profit-ImageAlthough here in Australia, we are fairly insulated from a lot of economic turmoil, we still witness economic highs and lows. But that should not keep us from dreaming higher and better. Should it?

I have found that when everything is going strong in the economy, very few people or companies actually want to change behaviors, processes or vendors. They don’t have much incentive to do so and risk upsetting the apple cart. However, when there isn’t a boom and they are struggling, customers & business partners are willing to try new or different approaches to address the pain and try to achieve greater value for the dollar.

If you are an entrepreneur at heart, you might wonder:

  • When would be the best time to start a new business?
  • Is there anything such as a perfect time for starting a new business?
  • Or would it be too much risk to simply – Invest, Wait and Watch?

While there’s no correct answer to the above questions, here are the 3 main reasons why it is the best time to start a new business:

Reason #1: People will always have needs.

Whether it is today, tomorrow or 10 years hence, people will always buy things they need and/or really want. Irrespective of the economic condition, there will always be millionaires and billionaires all over world, who will still have the buying capacity and will still buy what they want.

And if you invest in something that is a necessity like housing, food, water and even electronic toys, you can be sure the demand will shift, but never die. As an entrepreneur, you need to “find the thing that people need” and if you add more value than the cost, there will always be the demand for your products/services.

Reason #2: Bad News Creates Opportunities.

When housing goes down, the rentals go high. When the traditional mortgages go low, the lease purchases rise. The rise is food prices leads to rise in bulk buying. Increase in petrol prices make consumers think about purchasing smaller cars. When new car sales are down, the used car sales go up. And for us in our industry, when new flooring sales decline, cleaning goes up – because it is cheaper for people to clean their carpet and tiles than replace them, right?

As we see, demand never dies, demand shifts. As an entrepreneur, you need to identify the category of products where the demand is shifting to so you can invest in the right products at the right time.

Economy-Rebound-Up Reason #3: Economy Will Go Up.

Last but not the least, economy oscillates and if there are bad times, there will be good times too. Bad economies never last and once the good economy takes over, you will be better positioned and do well.

For any business, there will be peaks and valleys but as an entrepreneur, it is your responsibility to understand and make a decision “when the iron is hot” so you can reap the benefits later.

During boom times, sectors get overfunded and weaker competitors destroy the economics for everyone involved. They create significant noise in the market place, create skeptical customers by overpromising and under-delivering and undercut everyone else. In hard times, there are many fewer competitors who allow companies to scale quietly during the trough and take significant market share when conditions improve. Furthermore, these firms enjoy rational pricing, higher profitability/margins and lower cost structures given their DNA.

So, are you still wondering if there is really a perfect time to start a business?

PowerClean1If you have plans or have thought about launching your new business in the cleaning industry, the perfect time is NOW!

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