Why a Recession is the Best Time to Start you Own Craft Business
Do your friends and family discourage you from starting your dream business “in this economy.”? Is their reasoning that you’d be unwise to “leave the security of your job in a recession?” I’d find that humorous if it weren’t so sad because,most likely, these naysayers have never been self employed and haven’t yet been victim to the mass layoffs of “valued employees”. In the present economy, the only secure job is the one YOU CREATE for yourself.
Yes, I do listen to the news. I know people are losing jobs and retailers are shutting their doors. And I also know that most of my self employed friends with small businesses are reporting record breaking sales. Because when you’re self employed, you create your own economy. When something isn’t working , you can make changes quickly without the bureaucracy of a board of directors. On the corporate level, by the time reports are generated and changes approved, it is frequently too late. Too much has been lost. Not so in small business. Results are evident almost immediately so adjustments and corrections are made quickly. . In your own business, it’s much easier to tweak things and keep the cash flowing.
Let’s say you work for a large company and they lose their bread and butter account. You were the brainchild behind the product, and while it was making everyone wealthy, you were a hero. You head up the department that handles that part of the business. The CEO calls a meeting of the board and after lengthy discussions on how this will affect the balance sheet, it is determined that they will cut out your division. They’re sorry, but they have to let you go.
Now, let’s take the self employment scenario. You are a jewelry designer and your line was picked up by a major retail chain. Rather than rent a large studio and hire employees to help you with production, you enlisted the help of some stay-at-home moms to help with the orders. They are paid by the piece and happy for the extra cash. It’s worked out beautifully. Now, that retailer has cut back on the volume they’re ordering and fortunately for you, there’s no lease or payroll to meet and rather than you losing your job, YOU get to choose how to restructure and who gets to stay on. You have the option of doing more of the work yourself and focusing on the numerous other markets for your business. It isn’t likely you’d have this option if you worked for someone else. .
If you are still employed, Im not suggesting you quit your job tomorrow. But, don’t believe you are indispensable. And don’t lose sleep worrying about what you will do if (when) you lose your job , You’ll be in good shape if you START NOW to plan your safety net.
WHY is right now the best time to start a craft business?
Because if you begin now to build a part time business you’ll bring in extra money and build some savings incase you are laid off. And if you don’t become a “labor statistic tragedy’ you’ll have the option to leave your job eventually if you choose to be a full time entrepreneur.
Right now you have a huge pool of talent to pull from for any subcontract work for your cottage industry-and that IS absolutely the way to go. You can design your line and have people who are out of work help with the production while you continue your day job.
Suppliers are giving better deals right now on materials and lowering their minimums, so you will be able to purchase at prices that were previously reserved for large businesses.
If renting space for a studio, office or retail gallery is pat of the plan, commercial property owners are much more flexible on price and terms of lease because they have high vacancy rates.
Regardless of the economy, people are still buying gifts but they are more conscious than ever of choosing something special that they don’t see everywhere. Consumers are spending wisely and that means a gift or purchase for the home must have meaning .
People, particularly women, still love to shop and now more than ever, they want it to be an experience. They crave items that make them feel better or connect them to humanity. Consumers want to know that hands, rather than machines, have created the products they purchase.
While many of us have been conscious of purchasing domestic products, the general public is more aware now of the need to support American made.
So now that you see why a recession is the perfect time to start your craft business, what steps can you take now to begin building your own job security? I’d love to hear your ideas and help you create a company that will always have a position for YOU?
You’ll be amazed how much less anxiety you’ll feel when you know that YOU are in control of your own financial security.