We’ve written extensively on this blog about the effects of the recession on small businesses in the US. Regular readers know that we refused to participate and encouraged other businesses to do the same.
We are also keenly aware that for many small business owners the recession crippled many companies and make it financially challenging the scores of others. Logic would tell us that a fair assumption is that starting a business, or expanding your current business, in 2010 would result in financial suicide. Well, to in keeping with our contrarian tendencies we are here to say that 2010 might just be the perfect year for you to go out, use your entrepreneurial knowledge, create a small business of your own or take steps to grow your existing business.
How will this year be any different from next year, or even the year following that? The answer is simple; this is the first year, since 2008, that companies can be confident the next few years will likely be recession free. Let me re-emphasize that one more time – the recession is almost over (and by some accounts ended a few months ago). Of course, after any recession the worry about a double-dip is always present, but if being a business owner was worry free I can assure you a lot more people would call themselves business owners.
However, with the worst of it seemingly behind us, all small business owners now have a few less worries. For a company like Direct Capital that means even more opportunties to put capital into the hands of the small business owner so they can do what they do best.
Here are four areas where a new or existing business can use as a starting point for their march towards greatness in 2010.
President Obama’s current push on a Small-Business Proposal
The main idea behind the President’s proposal is for small businesses to easily obtain credit through banks. This would be made possible with a $30 billion fund, which would hopefully prompt growth in the small business industry – an industry which had to deal with a Mike Tyson size punch from the economic downturn.
Stock market is beginning to stabilize
The Dow Jones Industrial Average, NASDAQ average, and S&P average all were at an extreme lows during the month of February and even in early June. While there has not been a breakout in any of the markets, the markets have also not dropped below their February and June lows. As consumer confidence picks up and if the stock markets don’t drop below their 2010 lows, a rising stock market would go a long way to helping support confidence gains.
Easier transition in green movement
As discussed in an earlier post, the movement towards a green company is essential in this present day. Many companies are finding this out the hard way and the transition to the green movement is not easy to do. These companies are the businesses that already have equipment, supplies, etc. and will end up spending more money converting the already owned assets into green assets. If a company were to start today, there would be a going green philosophy from the beginning of the business.
Cost conscious society
The recession was a big wakeup call to a lot of different people. A call that sounded something like this: “if you don’t absolutely need it, don’t buy it!” Upon first reaction this can be thought of as a con to many companies, but for others, this type of situation is perfect. Cost consciousness will open people up for special deals and incentives with purchases, and will especially have a large influence on the “bargain hunters”. If a small business is focused around this type of philosophy, they could really flourish. As a bonus, buying equipment and supplies for your small business right now will be more affordable!
What other opportunities do see for your small business in 2010 as a result of the recession?
Photo credit to cojack1717 at http://www.sxc.hu/browse.phtml?f=view&id=1284177