Thursday, September 17, 2009

Now is the time to start that t-shirt company you vehemently rant about, Jacob.

Two posts ago I wrote The Overstock.com Story.  Here's what I got out of my experience:

1.  Don't shop at Overstock.com (given, but needed repeating).
2.  Right now is a wonderful time to start a small business.

Reason #1 is detailed in the above link.  Reason #2 is explained below.

The economy sucks.  If this statement is in any way revolutionary to you, please watch this video.  Warning: It's extra explanatory.




So, as a result of the economy sucking, businesses are losing money.  Especially the big ones.  For any of you return readers, you know I hate cliches, so I'll attempt to avoid a used one by creating one my own:

The more larger they are becoming today, the quickerer they hit the ground tomorrow.

Thank me later.

So where do these big businesses cut costs?  Well, they should be slashing executive salaries (I'm so tempted to go all tangent on you right now, but I'll refrain), but instead they seem to be cutting operational costs.

(Example:  Overstock.com has cut costs by apparently NOT testing their products.  We'll keep using them as an example, because I hate them.)

Large companies, like Overstock.com, are losing business from two different types of people:

1.  The "I've lost so much money that I cannot afford to spend any discretionary income" person.
2.  The "I've lost enough money that I cannot be wasting my well-earned dollahs on the crappy customer-care at Overstock.com anymore" person.

There isn't much to be done about Person #1.  The government can't even fix that problem.

But... There is an opportunity in wooing Person #2.  Large companies are losing business, because people won't put up with their shit anymore.  People are being smarter with their money.  They're envisioning their money as "worth more," because in many cases, they've had to work harder to earn it.  And people are so turned off by spending money that the least bit of crappy service completely closes the door on them really buying anything at all.

So what if one really needs to buy something?  Where to?

(In flies your small business to save the day with it's David vs. Goliath mindset ready to tend to your customer's every need)

There are a couple reasons why small businesses work right now:

They're more personal.  This idea can easily be grasped by your experience in a Wal-Mart vs. a Ma & Pop.  'Nuff said.

They don't have millions of dollars to lose.  All those gigantic companies have lost or are losing money fast.  Something has to go, and in many cases, their business suffers because of it.  Whether it be a chunk of their employees or a vital distribution branch, these large businesses start becoming overworked with their new situation.  Consequence: a lesser product or experience.  A newly formed small business doesn't have to deal with this, because it's just being formed.  Your business wouldn't be adapting, because you'd be giving birth to a "child of the times."

The goal would be to create a base, not survive a downturn.  Large businesses of today built the base of their company on the credit-loving people of yesterday.  They were so used to making money off of people that couldn't afford their products, and now they're fucked because of it.  Starting a small business now would rely on a customer base of people who actually have money, because using credit right now really scares the shit out of people.  As the business grows and the economy strengthens, you'll have an honest customer base who will actually pay the bills.

Besides the business benefits, you yourself will benefit as well.  Success upon success will boost your confidence and failure after failure will teach you how to become a stronger person.  And if you do things right, you'll be in charge of your own job security, which doesn't sound half bad, now does it?

So if you're a stone's throw away from a million dollar idea, right now may be your best bet at making that dream into a success.  Take a leap.  Dive in.  Cest la vie.  Life's short.  Take a chance.

And don't be shy about telling everybody who inspired you (after you succeed, of course).

No comments:

Post a Comment