When’s the best time to invest? When’s the best time to start a new business?
Right in the middle of a recession, because when the up-turn comes you’ll be brilliantly placed to benefit from it.
Let me say up front where I am right now: I’ve just taken a 30% cut in time and salary from my day job.
What does this do to me? It’s given me the required kick in the pants and a transition path to getting my own business going.
I’ve been making plans for my own business for a while now but, as so often happens, it was easier to continue doing my day job than to actually make the move.
Making the transition from employment to self employment calls for some major changes in thinking and lifestyle, and it’s only natural to baulk at this.
In my case I was looking for the easiest transition path possible.
I started the year hoping that my employer would set up a voluntary redundancy program, but that was not to be.
Then about 3 weeks ago they announced a reduced time and pay plan, which will be effective until at least the end of 2009.
That provided me with the perfect transition path:
7 days a month in which to concentrate on setting up my own business and getting some new customers, while at the same time having an underlying (albeit much reduced) income to enable me to eat at night.
It also provided me with the required kick in the pants: a 30% drop in income is going to knock a big hole in my lifestyle.
So all the plans I’ve been thinking about and making over the past several months are quickly falling into place.
And thank goodness for those plans. I’m all set and ready to roll almost without breaking stride:
I have my website set up, things like my charging and invoicing processes are all set up, I have business cards ready to be printed, I’ve identified my target market (I’m already getting leads) – basically, everything’s in place.
If you’re still in employment that’s great. But, before the axe falls (as it may well do in the current environment), get your plan B sorted out.
I wrote a post a while ago on how to prepare for a recession. For one of the few times in my life, I actually followed my own advice, and right now I’m more grateful than ever that I did so.
Other Articles You Might Like:
{ 10 comments… read them below or add one }
I like visiting this blog time and time again.
I still don’t see any signs of recession from my view point (I’m a strong strong believer in the law of attraction and developing a abundent mentality), but I can certainly understand what alot of ppl are feeling right now.
anytime is a great time to start a business because opportunities are available to anyone who will simply give themselves the chance.
I think the recessions great b/c it’ll light fires up someones azz and get them going on archeiveing their life long dreams
Bad Azz Network Marketer´s last blog post..How To Recruit Prospects Into YOUR Business Opportunity
Thanks Josef,
… and I agree – your mental attitude is everything. There are a number of posts on here that talk about how your attitude will define your level of success.
You can find them in the ‘How to Succeed’ category (list next to my picture) or by clicking the ‘recession’ tag at the bottom of the article.
Cheers,
Martin.
Hi Martin
Good on you! But please be aware of the ‘pit-falls’ of all of a sudden having plenty of time.
Stay focussed on your goal, even plan your activities for those ‘own’ days. It is rather easy to think in the morning you;ve got plenty of time getting things done, so you read some more blog-post etc before you get started.
Start your ‘own’ days as if you are employed, this will get you into a pattern of getting things done quickly and focussed.
Take it from someone who had to work from home the first few years of being in business (retail from home? – that’s a whole different story) your days will get squandered rather easily without a day-week plan
Karin H (Keep It Simple Sweetheart, specially in business)
Karin H.´s last blog post..In search of conversations
Thanks Karin,
You’re absolutely right – as I remember well from when I was running my own consultancy some years ago!
Luckily for me I tend to go the other way and think that if I’m not doing something productive I’m going to starve and get thrown out of my house. This makes me manically focused on my business, which does have downsides in other areas of my life.
So my need will be to try to achieve a balance.
Cheers,
Martin.
A recession may be a good time to consider starting a business if you’re locked into some type of stagnant corporate situation and are looking to make a change.
It may be just a bit too advantageous to say that a “recession” is the best time to invest, for an established business owner.
best,
Chris O.
Referral Key
“Your Trusted Referral Networkâ€
http://www.referralkey.com/small-business-blog/
Chris, hi,
You can’t invest if you don’t have the cash, or haven’t made plans for it – that’s true. But investing during a recession would be advantageous, whether or not you’re an established business.
My employer, for example, could be investing in the underlying platform and systems in order to improve their business efficiency and agility. They’re still going to be here when the upturn comes and it would be easier to do it now while business volumes are lower. It would put them in a better position in relation to their competitors when the recovery comes – because their competitors are all hunkering down.
And I wish I had loads of spare cash to make investments in the the stock or property markets right now. They won’t recover for a while yet but investing now would bring you a great return in a few years!
Cheers,
Martin.
I am so sorry to hear about your cut in time and salary. This is a hard time for so many and people are losing jobs left and right. It’s great to see that you are not letting it get you down, but are pressing forward and taking your future in your own hands. I’ll add your “How to Prepare for a Recession†post to my list of must reads on my online desktop. A plan B is so important these days!
Hi there,
Thanks for your support! Actually I’m really fired up about it. It’s been something I’ve been planning for a while and this is a great transition path!
Cheers,
Martin.
Maybe it’s a blessing for people to have a recession. I don’t assume anymore anything because what looks bad at first can seems as blessing in the long run.
that’s why I always say if anything happens it’s always for the better.
At first it can look bad but we don’t really see a whole picture…maybe it’s for the best
Tall Corina´s last blog post..Why I think it’s good to be tall
Hi Corina,
I absolutely agree – every situation presents an opportunity.
It just depends on how you look at it.
Cheers,
Martin.