Is it a good time to start in ecommerce
Some would say that the middle of the worst economic crisis the world has seen for three decades is a very poor time to start any business. Especially a retail business when retail sales have been particularly hard hit by the current downturn.
However, I would say there are some arguments for giving it some consideration.
Existing businesses can’t easily change the business sector they operate in. However, some business sectors are still very buoyant, by starting your business now, you have the opportunity to choose a sector that is still seeing a steady flow of business.
People still need their every day items and during recessions people still tend to purchase the same / similar products but try to buy them for less. Any retailer that targets the value for money conscious will do well in a depressed market.
Even the most frugal among us still feel the need to pamper ourselves on occasions, affordable luxuries tend to do well in recessions
Recessions create a ‘buyers markets’. This means suppliers are far more receptive to new business leads and potentially you may be able to source many of the items required to start your business for considerable less money. Recessions also create a lull the job market, which means if you require staff for your business, high quality applicants are readily available often for much lower salaries. The poor employment climate also creates employee commitment due to nervousness in the security of their job. Employees in hard times tend to be more committed and are more likely to tolerate the sparse facilities often found in a start-up environment.
Hard times force everybody to be more frugal, being frugal is a very important factor of running any new venture. Starting your business with these ethics will mean you are far more likely to carry them on even when the market begins to come out of recession
Probably the most important factor for success in hard times is the drive and enthusiasm on the part of the business owner. Devotion and willingness will keep customers returning over and over again, irrespective of the underlying economic climate.
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