There’s always talk of the macro-environment. Whether it’s a Greek default, frigates entering the Straits of Hormuz for military posturing, or a Chinese economic slowdown, the hits just seem to keep coming. Economic news (or news that can affect the economy) is everywhere. If you’re one to turn on the television or open the newspaper, it’s impossible to miss news of potential impending doom, and when the news questions whether big business can survive the environment, it obviously becomes concerning for the world of small business.
When There Are No Backstops
There are no backstops in the world of small business. Entrepreneurs can’t count on multi-hundred billion dollar bailouts or favors from highly connected bankers turned policymakers. The last line of defense for the small business owner is the same as the first line of defense: Self-reliance.
It’s not all bad news, however. Small businesses have a few advantages over the Too Big To Fails of the world. For example, small business owners can establish and cultivate meaningful relationships with their customers. By knowing your customers and what they want and need, you can actually provide a superior level of service and products.
The idea is to “niche down” whenever possible. That means creating a specialized product or level of service that just can’t be matched by the companies vying for large market share. In that way, you can actually succeed in creating your own market. You can effectively invent your own successful category within an industry.
Don’t Think Its Possible?
If you have doubts as to whether it’s really possible to “niche down,” just take the time to look around. Examples are everywhere. For instance, think about the rolling razor (have you even heard of this yet?)—a razor on wheels designed specifically for bald men who want clean shaven heads.
A guy who simply wanted to shave his own head without cutting himself created this product. Despite the fact that big razor companies sink millions of dollars into research and development, it seems that all they come up with is the idea to add more blades to existing razors. That result is a consequence of trying to please everyone who uses razors, rather than asking if there is a particular market that is underserved (or not served at all), which needs an entirely redesigned razor.
This ability to serve where there is no value being created by companies that occupy huge market share is where opportunity exists for you, regardless of the macro-environment.
The Reality Is That People Pay For Value
What happens in the aggregate has a much greater impact on big companies than it will on you. That’s because you can provide better service and products, and it’s also a function of the fact that you can know and have personal relationships with your customers. After all, you live and work in a community, and people enjoy being part of something—even if that something is your business.
Besides that, no matter how much the media reports that it’s “bad out there,” the world is not going to stop turning. People are still going to spend money, and if you can connect with them, they’ll spend that money with you.
Never A Perfect Time
There will never be a perfect time to start your business. When the economy is bad, there’s fear in the streets. When the economy is booming, it’ll appear that there’s too much competition. The reality is that the time to start is RIGHT NOW. No matter when you do it, there will be lots to learn, so the only thing you’re wasting is time!
The Parents Estate Planning Law Firm, PC
