July 7, 2007
Avoid starting your business during high-tide
A quick tip for budding entrepreneurs:
If your business starts at the right time, you can extract maximum growth by getting ready when the industry segment gets the peak demand. I strongly suggest that a new business should be started during the "low-tide", i.e. when markets are not doing well and industry sentiments are not positive. It helps in many ways:
1. You can get the best talent available in the industry due to lay off by major players.
2. You will not have major competition and you can prepare your competitive edge "in hiding" to give surprise to your competitors.
3. Tough times results in innovation. It is highly probable that your company will have the "innovation" advantage as you try to come up the adversities of a low-lying market. This innovation can become a catalyst when the markets are strong and can become the deciding factor.
4. You can concentrate in building the right processes, measurements, quality control systems and genetic-composition of your company which will result in its rapid growth when the right time comes.
5. Your expenses will be lower in building the fundamental framework for the company.
It will well known that markets have both the ups and downs. I feel "downs" should be well utilized to prepare the company for taking maximum advantage of the "ups". It makes much more business sense and also keep your spirits up!
Note: It is important to be patient. It is very important to know that you are preparing for the "good days" and, it is most important to know that you should not blow up all your money, since capital is another thing that you need to scale up your company fast when the right time comes.