Even in the Current Economic Climate, Your Idea Could Be the Next Brilliant New Business Launch

By Luigi Wewege Friday, June 19, 2020

Economic downturns and recessions may appear like a bad time for aspiring entrepreneurs to develop their business ideas.

However, as consumer spending drops and millions of companies around the globe scrutinize their business models, history has shown that recessions create space for newcomers with great ideas in the business community.

One of the best examples from recent years was the U.S. housing and financial crisis of 2008 that saw the emergence of Airbnb. Homeowners were able to hold onto their properties as the company offered a flexible and alternative income source for them, turning their homes into alternative vacation accommodation. At the same time, confidence in the banking industry decreased significantly, and cryptocurrencies found a new niche market.

Here are five tips that will help you take your business idea and create a niche for it among consumers.

Offer Consumers a Solution

Every crisis creates a unique set of problems, and these require fast thinking on the part of existing business owners or people wanting to try their hand at business. You need to come up with solutions to the problems faced by consumers. While these are often brilliant new ideas, they may also stem from adapting an original idea to the current situation.

As a potential entrepreneur, you need to look for a unique niche that can help people solve some of the problems created by the recession. You can do this by observing what needs have been created for those around you and those further away.

Currently, there is a huge demand for online purchases, online education, and a need for various healthcare products. Just a year ago, no one would have thought that parents would be trying to balance work and educating their children from home, or that there would be such a surge in demand for sanitizers.

Any niche product idea that will become essential to many needs to be acted on immediately because an opportunity never knocks twice. Keep in mind that people steer away from luxury and unnecessary items during any recession.

Create Connections

As you build on your new business idea, remember to focus on building customer relations. You have all the digital tools required to market your business online. Concentrate on social media platforms where your niche market already is and reach your consumers by interacting with them and offering them lots of visual elements.

Right now, TikTok is hot with younger consumers, but keep watching your competition and looking for the latest ideas and trends. Always take privacy seriously — because consumers do — and learn from the mistakes made by other companies.

Be Ready Financially

You will need some initial capital to start up your idea until you can reach out to investors for funding. Currently, people are more cautious about funding startups, and this can be a problem unless you have a brilliant idea that they want to fund. If you don’t have the money, reach out to family, friends, or get a business partner.

Financial planning is essential to the success of any new business. You may have to keep your current job until you can successfully develop your business idea, get financing, and launch it.

Be Ready to Face Challenges

As you create and develop your new business idea, you will need to be able to identify opportunities by being open to ideas and creativity. That means that you need to have a mind free of other pressing preoccupations. You will face many unexpected challenges, so you will need to face them in a level-headed way.

Take Advantage of Discounted Rates and Available Talent

Business is currently tough for many companies, and as you build your business, watch for discounted rates and free-trial periods offered by business services, marketing companies, etc. Many talented people are currently unemployed, and you can attract some brilliant minds from any field you require. They can offer your business invaluable services because of their knowledge or professional experience.

Every recession has a silver lining. If you have an excellent business idea, grab the opportunity now, and bring it to light.

About the Author

Luigi Wewege

Luigi Wewege is the Senior Vice President, and Head of Private Banking at Caye International Bank. Outside of the bank, he serves as an Instructor at the FinTech School which provides online training courses on the latest technological and innovation developments within the financial services industry. Luigi is also the published author of: The Digital Banking Revolution.