It goes without saying that the past few years haven’t gone the way we were expecting. We’ve seen a pandemic, a recession, layoffs, job losses, and global unrest. For some businesses, this meant rolling back investments, dropping plans, and adjusting strategies to ensure survival. For societies as a whole, this has been a disaster with consequences we can’t thoroughly anticipate.
Such a context is dire enough to deem anyone trying to start a business as crazy. Of course, launching a business during a recession doesn’t feel like a smart move at first glance. But in truth, there are some beneficial aspects of creating a business during hard times. I should know about it – BairesDev, my nearshore and offshore software outsourcing development company started in 2009, right in the middle of a financial crisis.
I remember wondering whether my partner Paul Azorín and I were crazy for launching a company back then. More than a decade later, I can safely say that we weren’t. But I also can pinpoint how the crisis “helped” us during our early stages, which are the same reasons I think you should start a company, too.
There’s A Lot Of Demand For New Solutions
A convoluted world is filled with issues. While we’re dealing with difficult times, things are constantly in flux, and we’ll emerge from the other side Possibly all human activities will have to make some adjustments. From education and healthcare to entertainment, it’s highly likely that the way we do things right now won’t work as well anymore. That means that there’ll be plenty of opportunities for new products and services that better accommodate those needs.
Saying that problems breed opportunities is somewhat of a cliché but that doesn’t mean it is less true. When Paul and I started creating BairesDev, we saw that a lot of companies needed cost-efficient software development solutions. We understood that we could provide that remotely and with the help of talented Latin American IT professionals. The problem was there – the solution, too. It’s always a matter of identifying the new demands problems will bring.
You Have Access To More Talent
Every successful entrepreneur knows this for a fact – your company is as good as the people you work with. You can have the best idea in the world but you won’t go anywhere without the right talent by your side. Finding highly-skilled professionals is always a struggle, especially for startups, since they are competing with all the other companies for the same professionals.
That changes during a crisis. Unfortunately, crises force companies to shut down, lay off employees, or delay hiring goals for some time. That means that a lot of talented people will be available for hire. Some of them will even create companies of their own, which is the silver lining in all of this. The result is that you’ll find it easier to get the right people for your company, all while doing your part to reactivate the economy.
Securing Funding Is Challenging – But That Can Be A Good Thing
Maybe you have a good idea now on demand but still are unsure about securing the necessary funds to get things going. I know where you are coming from. A crisis like the COVID-19 pandemic certainly slows down investments and makes venture capitalists think twice before granting money to a project. But that doesn’t mean that they stop investing altogether – it just means that they get pickier.
That, in turn, will make entrepreneurs rise up to the challenge to come up with more innovative and high-quality ideas that can actually provide value and turn a profit. Additionally, this will mean that the economic plans and budgeting for your proposed company will be more realistic while being focused on a lean and efficient operation rather than in a luxurious proposal that’s nothing more than glitter.
There Will Always Be Customers
Back in 2009, when BairesDev was just starting, a lot of companies were reluctant to invest in software development. The reasoning behind that was “why put money on development while we can still pull through with our current solutions?” So, we didn’t have that many leads at first. However, as understandable as that logic was, we knew that there were customers looking for what we had to offer. It was just a matter of taking the time to find them.
And we did find them! We were able to show several companies that, by investing in software development during the recession, they’d get a competitive advantage that would push them forward when the dust started to settle. We worked hard for those first customers and showed them our value. We focused on quality rather than quantity. And slowly but steadily, we found more and more customers that allowed us to grow through the recession and beyond. What I’m trying to say is – if your idea is good enough and truly solves a problem, then there will always be customers for it.
The Time For Entrepreneurs Is Now
Look, there never was an easy time to start a company, especially if you’re a first-time entrepreneur. Launching a business means failing over and over again until you learn and get it right. Sure, doing so feels safer when the world isn’t in crisis but, as you can see from my own experience, you can turn that into an advantage.
Besides, the most important thing is that crises need entrepreneurs to keep the economy going. Good ideas fuel good businesses, and good businesses are at the very core of an economy. If we are to get through this health crisis (and I’m 100% that we will), we’ll do so by getting down to work and not by sitting in our houses worrying about it or waiting it out. What do you think? Are you ready to launch your business?
