Get inspiration and advice from experts about starting a business in a tough economy
Starting a new business is one of the most unpredictable, tumultuous adventures you can embark on — but it also has the potential to be one of the most gratifying, lucrative ones as well.
Let’s explore whether starting a business in these uncertain times is worth it in 2022.
What Industry Leaders Have to Say
HubSpot spoke with a handful of entrepreneurs about their personal experiences with launching businesses back in 2020. Their feedback is detailed below.
Brendan Hufford, founder of SEO for the Rest of Us
Hufford founded SEO for the Rest of Us as a community dedicated to helping people stop learning (and start doing) SEO.
“If these times have taught us anything, it’s that our world is farther out of our hands than we may have ever imagined. Multiple income streams can provide security and a level of freedom that, in a way, make things more certain,” shared Hufford.
Hufford learned that, while starting his new business was stressful, he was also able to bring a bit of certainty and peace to people looking to learn SEO. “It’s been a privilege to help others grow their business during the pandemic,” he shared.
Should everyone start a business during uncertain times? Hufford says no. “You shouldn’t start a business if you’re gambling on more than yourself,” he said. “Adding that level of stress to your relationship with your significant other or children isn’t something I’d ever advise doing.”
Melissa Pedigo, CPA, founder of A CPA Writes
Pedigo is a CPA who writes tax, accounting, and finance content exclusively for CPAs, tax accountants, and financial advisors — she’s also dubbed herself Chief Nerd Officer and tax-writing wizard.
“If you already know what you want to do and are sure there’s a market for your product or service, then starting a business in uncertain times is no different than starting one in certain times,” said Pedigo.
However, she warns that if you’re not certain of the demand for your idea, you should wait until a more stable time when consequences may be less impactful.
Moreover, with a solid support system (like a spouse, friends, or business partners), you’re better suited to start a business during uncertain times. “Having a supportive spouse, both financially and emotionally, is underappreciated and under-recognized in providing the security to make big decisions like starting a business,” Pedigo shared.
Doug Davidoff, founder and CEO of Imagine Business Development
Davidoff and his team enable companies to orchestrate all elements of their sales, marketing, and customer success efforts to generate more impact.
“Asking if one should start a business in uncertain times infers that there’s an option to start them at certain times,” Davidoff countered. “In my experience, there is no such thing as certainty, especially when it comes to starting and running a business.”
In fact, Davidoff believes that uncertain or difficult times are, in fact, the best times to start a business — for three reasons:
Tough times (like recessions) have a greater impact on larger companies. If you’re a new company, there are still plenty of opportunities available for you.
Companies and people alike are more likely to be actively considering a change in turbulent times than they are in smooth times.
Good decision-making pays off far more in difficult, uncertain markets than in good, solid ones. Companies don’t become great when times are good — they become great when times are difficult.
“Businesses should be started in uncertain times because if they weren’t, they would never be started,” Davidoff stated. “I do believe there are exceptions for who should start a business in uncertain times, but it would be the same answer if times weren’t uncertain — starting a business is not right for everyone.”
Dr. D’vorah Graeser, CEO and Founder of KISSPlatform
Graeser founded KISSPlatform as an agile competitive intelligence toolkit to help you innovate and validate your ideas to bring them to market faster.
When asked about starting a business during uncertain times, Graeser said, “Times of crisis offer unique opportunities to take control of your future. [During crisis], only the companies that ventured to do something new were available when things calmed down.”
According to Graeser, crisis provides a novel scenario in which we can succeed while other companies fail. To reach that success, she encourages new entrepreneurs to make decisions quickly and take chances. “Limitations and constraints make us think better and faster,” she shared.
She agrees that while starting a business in uncertain times isn’t for everyone, it can be a smart move. “[Starting a business] will test you … but I’ve worked with many companies that look back to uncertain moments and are thankful for taking bold actions, making plans for the future, and investing in their businesses.”
What’s Your Plan?
In business, success rarely comes from winging it. Instead, you need a well-devised strategic business plan. This outlines how you’re going to execute your ideas and maintain your business over time.
A strong business plan utilizes research on your competitors and target audience. It considers competitors’ offerings, pricing models, options, KPIs, delivery, timelines, customer feedback, marketing channels, and areas for growth. The goal is to understand where your industry is at, where it’s heading, and how you can set up your business to succeed in the space.
Check back next month when we discuss tips for starting a business in an uncertain economy.