How to start a business in a recession

It's been a tough time for startups right now. The economy seems to be recovering, but investors are still too stingy to invest money in new businesses, especially in the tech sector. In fact, the best advice for entrepreneurs is to wait until the economic climate warms. "If you can wait, just wait." Now is not a good time. Analysts said. New technology companies are less likely to get venture capital, and competition remains brutal, and customers have little interest in and demand for new Web products.

For those who ignore such warnings, there is still hope for success. "There are many obstacles to overcome, but it is not impossible to succeed." "If you're going to start a company, it's hard to get an investment, but some companies can still do that," analysts say. "For startups, the role of profit has changed dramatically," he said. In the the 1990s, making money was a second priority for startups, but in the current economic climate, making money was at the top of the list. "You have to make your business model profitable at some point." This seems to be a clear fact, but it didn't seem so obvious two years ago. ”

To be successful, startups must focus. "There's always some small space on the market. Find them, identify specific products and spaces, and then follow closely. Don't try to make all the products for all people. "It's not enough to have a good idea right now, and a start-up company must also be experienced," he said. A management team is important in any industry. But at the height of the Internet, this basic element was ignored. Now, after many famous internet companies have "stalled", VCs have returned to basics. When it comes to management, they're looking for a different entrepreneurial plan than they did three years ago. "In the past, if you were 25 years old, you were brushed off." Now people are looking for more experienced managers, not dreamers. ”

A strong management team is more important to startups than it is to be able to express results quickly. The cornerstone of any start-up company is human, and only people know how to get the company started. The problem with startups is that you have to know how to start as soon as possible. Another key to success is controlling costs. The days of expensive lunches, luxurious offices, sky-high salaries and huge teams are gone. It is important to commit to investing in the most likely cost-saving ways. Not only is this a simple way to cut wasteful spending, startups should also use off-the-shelf technology, perhaps even using old equipment.

In addition to controlling costs, startups should be sure they are focused on some basic issues. For example, Web startups should have a Web site that is easy to navigate, a reliable execution capability, a complete telephone customer service support system, a good marketing strategy, and a basic concept of company construction. Analysts warned that special-time e-commerce companies should be committed to maintaining a small size and fill the market gap. E-commerce environment is destined to be very large or very small to succeed.

Midsize enterprises need the same infrastructure and support as large Web sites. But they have no income or trading volume to support their site's profitability. "Small companies can run simple sites and manually complete updates because they don't expect to handle 1000 different customers, and they're happy to have 100 customers a day." "The last small suggestion is that if you don't succeed at first, quit immediately." "The chances of getting a seed fund to a final IPO are actually very, very low," he said. If you may fail, fail as soon as possible and exit. ”

[Article Source: Times pioneering net] www.tiemsventure.com