Not long ago, I was talking to an individual about starting a new business, buying an existing business, or even setting up a new franchise. Although that decision had not been made yet, we did go through the various scenarios, potential opportunities in the area, and some of the challenges that lie ahead. There was one business for sale, through a private party that looked promising with some potential. There were also businesses of similar types within a 30 mile radius through several different business brokers.
The one business that my acquaintance considered potentially viable perhaps had not succeeded up to its full potential, or maybe it had in the past, but its heyday was gone, and therefore, we wondered is it possible to bring it back up to speed and surpass its once strong local market dominance. I asked what had happened, and why the business wasn't doing the level of revenue that perhaps it should. He explained to me that the business had not succeeded because basically the economy sucked after the financial meltdown in 2008.
If you know much about what happened out here in California, Nevada, and Arizona you can understand how the economy played a part in the destruction of so many small businesses. So, obviously I wasn't too surprised with his summation or observation about how come that business wasn't batting 1000 anymore. It is a reality that the economy in that area did suck.
Yes, true enough and yet, as entrepreneurs we are not allowed excuses, and a continued socialist regime in Washington could cause a continued economic downturn one you should be ready for, plus there will be additional costs with labor due to ObamaCare, and your personal taxes will rise with fewer deductions regardless of who gets elected on this go around. As I explained all this to him, he too was sketchy about the future, as are many entrepreneurs going forward.
Even many of the largest corporations are not spending a lot of money right now, and their holding onto huge cash reserves just in case. Can you blame them? After all, they have shareholder's equity and quarterly profits to worry about, and they can't take risks that big with an unknown future economy. Still, I can tell you this; most of the great strides I made in business as an entrepreneur were actually achieved during the worst economic times, and as things started to improve.
There is something to be said for getting in while things are bad, honing your skills, and getting ready for the good times. If you have all your ducks in a row when the market turns and the economy points upward, you are good to go. If we are going to hit a big upswing in the economy, it makes sense to get in on the cheap, and get the best deal possible before things return. Indeed I hope you will please consider all this and think on it.