(gentle piano music) – [Shaf] Are tough times looming? I think even the most optimistic economist will be tightening their belt. The economy grew 0.3% in July, easing fears of an imminent recession. But with Brexit chaos, services and manufacturing
sectors struggling and a weak pound, the
economic outlook isn’t rosy. So you’d be mad to start a
business in this climate, right? Wrong. A downturn can be the perfect
time to start a business and today’s Seven Hacks
is going to show you why. One, sharp focus. During tough times, we
all become hyper-aware of our incomings and outgoings. We know that our job
might be on a shoogly peg and we start to think about
what else we could do instead. If you fear for the boring,
nine to five office job that you’ve hated for years,
a recession can give you the focus and the mindset
to do something about it. If you change your job
to start up a business, the future is in your hands and not some faceless accountant’s. Two, a cut above. Your start-up has an automatic
advantage over competitors. Business loyalty can go out
the window during a recession as firms look around to get a better deal. That means they will be all
ears if you’re pitching. They will be shopping
around for a better deal so give them a reason to pick you and try to undercut rivals. Three, flexi-time. Unlike larger, more
established businesses, you can be more flexible when
you’re just starting out. Can bigger firms react as quickly as you? Make that a key part of any pitch. Bear in mind, too, that they
may have to make good people redundant and these people
will be looking for work. If you are growing quickly, a recession is a great
time to find top employees. Four, negotiate like a pro. In a downturn, things that
you need may cost less. Is warehouse or office space essential? If so, negotiate a deal. You are in a position of strength if a landlord is looking for a tenant. Maybe you can negotiate an extended period of reduced or rent-free. It’s the same with supplies. Stockists will be looking to sell goods so always try to get a good
price on things like desks, chairs and computer equipment. Five, interesting times. UK interest rates are at 0.75%. They have edged up ever so slightly since the last recession but are still low. That’s rubbish for savers but great if you’re borrowing money. If you need capital to set up, there are great deals around
and it won’t cost as much as it would if interest rates were higher. Loans and 0% credit cards are available. Six, fewer rivals. People generally don’t want to take risks during a recession, even although you and I know it can be the best time
to start a business. That means if you do start up, you have fewer rivals to compete with. There will be less funding available but if you’re bootstrapping, that simply keeps you in control. Seven, lean and mean. If you can successfully launch a start-up during a recession, just
imagine what you can do when the good times roll back around. Operating in a downturn
should automatically lead to good business practises. Your firm will be lean
with little or no waste. This will stay with you
when the market recovers and you can lift prices
and improve profit margins. So it can be tricky but a
recession can be a wonderful time to start your own business. And for all the help and advice
you need to be a success, subscribe to my YouTube channel; I’ll be with you every
single step of the way. (gentle piano music)

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About the Author: Oren Garnes


  1. Really enjoyed this #7hacks! Interesting consideration of how changes in risk assessment, for example at work, can create a pathway into entrepreneurship.

  2. Superb Shaf. With every downturn arises business opportunity and your video provides all the valuable tools to maximise such opportunities!

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