Top 10 reasons to start a business during a financial crisis

Who would start a business during the current financial crisis?

Well, according to Buckworths founder, Michael Buckworth, it should be you! 

Now it may not seem like the best time to start a business – utilities are getting more expensive, inflation is at its highest for more than 40 years and employing staff imposes a challenge. But there are actually fantastic opportunities out there for intrepid entrepreneurs.

Here are 10 reasons why now is the perfect moment to set up a business:

1. LOTS OF INVESTMENT OPPORTUNITIES
People with money did not invest much during the pandemic, and investors are likely wealthy enough not to worry too much about higher utility bills. Interest rates are also still pretty low so leaving their money in a bank account is not terribly attractive. All that means there is money to invest, and you need to make sure they invest in you.

2. BORROWING IS CHEAPER
Because of the high rate of inflation, all borrowings reduce in size in actual terms and coupled with low-interest rates, borrowing money is less expensive.

3. EASIER TO ATTRACT EMPLOYEES
Employees are dreading to return to traditional working. If your company can provide an exciting alternative or more flexible working hours, you will be able to attract talent than more conventional companies.

4. YOU HAVE TO BE SUCCESSFUL
Businesses require a lot of effort, but entrepreneurs that are frightened of failure will work extra hard. If you are anxious about not being able to pay your bills, you will spend more time and take more risks than if you are at ease.

5. COMPETITOR STRUGGLES
Your competitors are most certainly dealing with larger costs than you are. Maintain a lean but efficient operation and you are likely to receive some of their customers.

6. PEOPLE NEED ALTERNATIVES
People struggling to make ends meet are more likely to look for cheaper alternatives than their usual suppliers. This gives you the chance to attract prospects who would otherwise be happy with their current supplier.

7. LANDING NEW DEALS
As goods and services get more expensive, businesses struggle to pay for them. This leads to businesses paying late, going bust and suppliers losing customers as a result. Everyone is looking for new customers to balance those in trouble and they are prepared to offer appealing rates to attract new customers.

8. OPPORTUNITIES AVAILABLE FOR ALL
As a society, we have become more concerned about sustainability. We support the Black Lives Matter movement, we welcome Ukrainian refugees into our homes, and we care that trans people are treated with dignity. The barriers to setting up a business – be it race, class or economic background, are falling away. Anyone can be successful.

9. GETTING PROPERTY IS EASIER
For every restaurant or shop that goes bust, there is a landlord desperate for a new tenant. Property is cheap and landlords are doing insane deals – think your landlord giving you a 6-month rent-free period and paying you to fit out your premises! If you need a property,  go get it and do not settle for anything less than a crazy good deal.

10. NO TIME LIKE THE PRESENT
If you want to set up a business, do it! Remember, nothing is more expensive than a missed opportunity. There will never be a perfect time to set up a business and if you do not do it now, you probably never will.

 

ABOUT BUCKWORTHS

Buckworths is the only law firm in the UK working exclusively with start-ups and high growth businesses. With 70% of its clients in technology, of which half are fin-tech businesses, the firm is recognised for its unparalleled expertise in advising start-ups from incorporation, to strategically raising investment, to exit. It has a finger on the pulse of the start-up ecosystem, and offers clients a clear understanding of current market trends. Why not come along or tune into one of our events?