We're dealing with a global crisis, but that doesn't mean it's a bad time to start a business.
Needless to say, the last few years have not gone as we had hoped. We've seen a pandemic, a recession, layoffs, job losses and global unrest. For some companies, this meant reversing investments, abandoning plans and adjusting strategies to ensure survival. For society as a whole, this has been a disaster with consequences we cannot fully predict.
I remember wondering if my partner Paul Azorín and I were crazy about launching a company at that time. More than a decade later, I can safely say we weren't. But I can also identify how the crisis “helped” us during our early stages, which are the same reasons I think you should start a company, too.
There is a lot of demand for new solutions
A complicated world is full of problems. While we face difficult times, things are constantly changing and we will emerge on the other side. Possibly all human activities will have to make some adjustments. From education and healthcare to entertainment, it's highly likely that the way we do things now no longer works so well. This means there will be many opportunities for new products and services that better meet these needs.
You have access to more talent
Every successful entrepreneur knows this for sure: your company is only as good as the people you work with. You can have the best idea in the world, but you won't get anywhere without the right talent by your side. Finding highly qualified professionals is always a struggle, especially for startups, which compete with all other companies for the same professionals.
This changes during a crisis. Unfortunately, crises force companies to close, lay off employees, or postpone hiring goals for some time. This means that many talented people will be available for hire. Some of them will even create their own companies, which is the positive side of all this. The result is that it will be easier to get the right people for your company, while doing your part to revive the economy.
Securing financing is a challenge – but that can be a good thing
Maybe you have a good idea now in demand, but you're still unsure about how to secure the funds needed to make things work. I know where you're coming from. A crisis like the COVID-19 pandemic certainly delays investments and makes venture capitalists think twice before granting money to a project. But that doesn’t mean they stop investing completely – it just means they become more demanding.
This, in turn, will make entrepreneurs rise to the challenge of coming up with more innovative, high-quality ideas that can truly add value and generate profit. Furthermore, this will mean that the proposed company's economic and budgetary plans will be more realistic and at the same time focused on a lean and efficient operation rather than a luxurious proposition that is nothing more than glitter.
There will always be customers
And we found them! We were able to show several companies that by investing in software development during the recession, they would gain a competitive advantage that would propel them forward when the dust began to settle. We work hard for these first customers and show our value. We focus on quality and not quantity. And slowly but steadily, we found more and more customers who allowed us to grow through the recession and beyond. What I'm trying to say is: if your idea is good enough and actually solves a problem, there will always be customers for it.
The time for entrepreneurs is now
Look, it's never been easy to open a company, especially if you're a first-time entrepreneur. Launching a business means failing repeatedly until you learn and get it right. Of course, doing this seems safer when the world isn't in crisis, but as you can see from my own experience, you can turn this into an advantage.
Furthermore, the most important thing is that crises need entrepreneurs to keep the economy running. Good ideas fuel good business, and good business is at the heart of an economy. If we want to get through this health crisis (and I'm 100% sure we will), we'll do it by starting work and not sitting at home worrying about it or waiting for it to pass. What do you think? Are you ready to launch your business?
