There are always opportunities in this world, even when we are in the middle of economic turmoil for many industries. Entrepreneurs are constantly looking for the next idea that can disrupt an industry. How can they get products to customers faster and for less money? What brick and mortar businesses can be digitalized?
These questions are being applied to every sector of our economy. A tech startup has the ability to benefit in a big way from filling a need during difficult economic times.
An Appetite for Digital
There is now an appetite for digital applications like never before. Take a look at the evolution of the workforce in comparison to years past. You now have millions of folks working remotely full-time. With this, there is a need to have everything in a more mobile, accessible, and digital state.
With this shift towards remote and digital comes a huge opportunity. Startups are looking to create new ways of communication and collaboration. Companies are continuing to shift budgets towards solutions that can help them increase productivity while reducing costs. For example, companies like Dropbox and Uber grew out of the economic collapse of 2008.
Comfort with the Digital Age
One of the big hesitations that so many people had in the past with digital was the perception of risk around it. Folks wanted to go to the bank still, to deposit checks in paper form, handle cash, etc. There was hesitation to transfer funds electronically, to take pictures of checks to deposit them. A lot of these perceptions are now going away with the need to adopt digital. Now that everyone has had exposure to the digital age and its possibilities, the security of it, convenience, and everything else are off of the charts.
Now that everyone knows what technology can do for them, they want more of it. This creates a huge opportunity for tech startups to take things to the next level. They can take that new comfort that exists with the community and bring it to a state where new possibilities exist. Take the interest that now is there for digital everything and bring new ways for folks to interact, to make their lives easier.
Funds Exist for Big Ideas
Just because the economy is not in the best state does not mean there are no funds for the opportunity. Investors are smart and they have funds available for the right chances to take. Many of the top-tier funds are looking for new entrepreneurs with new ideas to bring forward the world as we will know it tomorrow, not today. If you don't want to give up equity there are other options to consider like loans, grants, and crowdfunding. You can check out all the small business loans at Crediful to get an idea of the different business loan companies and options.
There are recession-proof businesses and these include things like essentials, utilities, and more. When you have technology that can make these easier to get for the masses, it is a great combination and something an investor is going to flock to in no time.
Talent is Everywhere
One of the biggest reasons to dive forward as an entrepreneur and a tech start-up is that there is ample talent. There are now a lot of folks that are out of work, but that does not mean that the talent no longer exists. The quantity and quality of available talent are at a level not seen in decades. It is also an expectation that companies will continue to scale down as the months roll forward to cut expenses.
Now that there is so much talent available, it is a great time to take this talent and use them to help bring your idea to reality. When the talent exists, that is the time that you want to build and build fast. Get your ideas out there, fail quickly, so that you can continue to refine before hitting that sweet spot.
When building your team during an economic downturn it’s important to take these things into consideration:
- Are they hungry? This should be an easy question to answer for someone that may be out of work during a difficult economic time, but it’s an important one to answer. Working at a startup is different than a corporate gig. Startups need team members who are loyal and dedicated to the company vision and not someone who will just “do the job.”
- Why do they want to work at a startup? Startups need people who believe in the company’s mission. They should share the company's values and want to be there for the right reasons.
- How much work-life balance do they want? This can be a double-edged sword for startups. You want employees who are willing to go above and beyond to get the job done while also taking care of their physical and mental health. During the onboarding process, it’s important to lay the groundwork so they know what’s expected of them. The startup founder should be a good example of the hard work that needs to be put into the job and the self-care that employees will need. Company culture should come from the top, so founders should share how they get the sleep they need and how they exercise, while also working hard to get the job done.
There are many companies out there built with opportunities in mind. Think of some of the companies such as Spotify, Uber, and others. These were all companies that blew up in popularity in a time where the economy was in a slowdown. As an entrepreneur, you can take things to the next level by seizing the opportunity as a tech startup and bringing your ideas to a new world, new normal.