Building Your Business After a Recession
One question gnawing at us the last few months is how can businesses rebuild after the recession? How can businesses return to their previous success and glory? Maybe your company was able to withstand the latest global recession. If so, hats off to you and your business. That is a success in itself. The recession linked to COVID-19 practically hit every industry and affected the United States GDP and unemployment worse than the recession of ’08. How are you supposed to rebuild after complete deterioration? There are not a whole lot of economic or financial threats that loom over your business more detrimental than a recession. It may seem impossible to restart or even jumpstart your business. We’re here to tell you, it’s not impossible. On the contrary, actually. Take it for what it is. At this point, your business already has a leg up. You know how to operate; you know the challenges that come with your business. Yes, the past year and a half have been a struggle, but you are not starting from ground zero again. You have the experience, knowledge, and extra incentive to rebuild because you already know it is possible. We are not saying that rebuilding after a recession is easy, but it is more than doable. Today, we are going to drop a few lessons to help build your business and help bounce back to your former success.
The following article was written by Sean Manning for Forbes on May 24th, 2021
The next several months will be one of the more interesting economic periods of this generation. Understandably, much attention is paid to the lows of a financial crisis like the one we experienced in 2020, but there is so much to watch for now and consider as the economic outlook begins to turn for the better. The first years after a recession can signal trends — for example, how the next era of business, along with several other sectors, will emerge to accommodate the changes in the workplace and virtual work environment.
Similar examples were also certainly the case a little more than a decade ago, as American businesses climbed out of the 2008 and 2009 recession. Numerous industries grew rapidly, largely because a new generation of entrepreneurs took their futures into their own hands and adapted.
I was one of them.
I launched my business during one of the bleakest periods of the last recession. More than a decade later, I see so many similarities between the experiences I’ve had in building a national franchise and the brave business owners taking charge of the post-pandemic economy.
For those blazing a new entrepreneurial path, here are some key lessons I learned both in the early stages of growing my business and during a similar economic rebound that we’re now anticipating.
Believe
It may be a simple concept, but it’s important to know that success is possible when going out on your own. Recessions are full of stress, doubt and uncertainty. So even though there are signs that things are trending toward a more positive environment, it can sometimes appear to be difficult or reckless to take that leap — well, maybe not.
One of the hallmarks of economic downturns is that employees who were either let go from their job (or worried about it) begin to consider charting their own career path. Studies following the 2008 recession showed that nearly 1 in 5 entrepreneurs had started a new business after losing their job. That’s no surprise — circumstances often inspire action. Belief simply pushes that action toward reality.
Be Patient: You’re In This For The Long Term
Without a doubt, optimism soars when things start to turn for the overall economy. To many, that’s the sign that starting a business is possible in the first place. But while the economy may be rapidly rebounding, success is not as easy as riding the first wave.
With any business venture, but especially one started in a precarious environment, it is essential to take a measured approach to development. Building a business from concept to reality takes careful consideration and in-depth market research. Curate a business plan that will not only put you in a great short-term position but will also ensure your long-term viability and create a framework for your success.
There is often a rush to capitalize on the first signs of an economic uptick. It’s important to avoid overextending yourself, which can happen if you’re anxious to get gratification too quickly. If anything, the experiences of the recession should emphasize the need for some safeguards you should build into your model. Consider some level of patience as you find an essential product or service, and create a nimble operation that can be altered, if necessary, to fit what the market or a future opportunity dictates.
Understand Your Value
Every business wants to find a way to provide value. It is obviously important to offer a service or product that truly fits a need and demand. But beyond value in the consumer sense, it’s also important to recognize the responsibilities and commitment that come with building a business in periods like this.
Maybe, as is true for me, your value is a service that will help the business communities recover and build through additional employment. Do you then start the business from the ground up, or do you acquire a struggling business that needs new life put into it? Helping a community rebound through business ownership can bring great value to the business owner, the community and the employees who become employed for the long term.
I’ve previously written about the importance of bringing empathy to your leadership, and that principle certainly applies in this circumstance also. Your business can provide real value, not only at the point of the day-to-day operation but also in the long term, if you were to sell and transition the business to another owner.
Look For Guidance: Someone Has Been There Before
Networking is always important in business, but it is at a premium when you’re in an unfamiliar situation. Building a business in the wake of a recession is one of those times, and expertise is always invaluable. It is often said that success leaves clues. And finding and leveraging those clues is vital in business.
The good news is that countless leaders have been in the same position and have lessons they’ve learned, just like I did. We have an owners’ meeting with our franchisees every month. When I meet with franchisees who have taken that step toward business ownership in the past year, I specifically say that their motivation is my motivation. Their inspiration is mine because I’ve taken many of the same steps with my mentors in business as they are taking currently.
I’m willing to help them navigate this journey, and there are thousands of leaders open to providing that same guidance. You have the confidence and the motivation to go out on your own, you have the guidance and support of others, and the recipe for business success starts there, even as we emerge from a recessionary period.
The previous article was written by Sean Manning for Forbes on May 24th, 2021
Like we said before, this will not be easy. These types of things take time and effort. Just because it is not happening right away, do not throw in the towel. Reach out to your previous customers, use your network, analyze your previous operations and fine-tune. You already know how to run the business, which should fuel your determination. Continue to put forth the effort and use the foundation you have built, it will be your best friend.
