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Is it a good time to set up the business you’ve been thinking of but never got the time (or found the time) to really work out the details and more importantly launch it?

With many businesses laying off employees thanks to the economic downturn caused by COVID-19, now might actually be the right time for you to explore the option of becoming your own boss and starting your business, consulting or even freelancing service.

I was reading an interesting article in FastCompany by startup founder Brian Metcalfe who stated there is never a right time to start a business and what was more important is whether the business in solving pain points relevant to today.

The article reminded me of my own journey into independent Financial Consulting and later Executive Coaching.

Neither happened overnight and I had to ask some hard questions upfront as well as do some legwork to come up with the right business plan.

Back in 1998, I set up my first consultancy and landed my first client within 3 weeks.

The background behind the consultancy was a deeply personal one. My Big Why was more of proving to myself that I was highly employable and capable of being my own employer.

I had been offered a job with a Big Four Firm in India but 3 weeks before leaving Tunisia where I was working for the Tunisian partner firm, the offer was taken back.

This firm was merging with another global Big Four firm and they were undergoing a restructuring where new hires were stopped, offers rescinded and excess staff was being laid off.

There wasn’t much to be done long distance so I took it on the chin deciding I’d get a job after reaching Delhi. That was far from easy.

I got interviews but somehow it wasn’t working out. I was over-qualified for the jobs and a couple of times the interviewer was curious to see me based on my resume and professional achievements.

It was the era of outsourcing global accounting work and there were jobs available in that area but my profile was not a good match. I could not see myself handling overseas company bookkeeping when I had already been the Finance Director of a New York Listed Company.

Whatever the reason, it doesn’t matter anymore.

What does matter is I got angry enough to take decisive action of setting up shop and finding paying clients who would value what I was bringing to the table.

I wanted to take back control of my career path and not leave my career to the whims and fancies of interviewers who wasted my time and perhaps their own too. I was not handing out permission slips to knock my self-confidence or question my worth.

My overarching logic?

I had an apartment that could have an office in one of the bedrooms, a car, mobile phone and a computer with internet connection.

I could do certain assignments that didn’t require a bandwidth at a competitive cost and still make a profit because I had worked out all the details in my business plan including partnerships with other accounting firms if I needed staff.

From a tax point of view, I’d have more cash after business expenses than as a salaried employee. That was good, right?

As a senior finance professional who had done marketing at a higher level, I could prepare pitch books and present myself as a good option.

AND I believed in myself. I had the right mindset.

Since then, I’ve found more instances of professionals launching new businesses during the pandemic. 

By chance I got my first lead within a month at a cocktail party while chatting with one of the guests who felt I was ideal for a project in Nepal.

A friend of theirs, the owner of an adventure travel group of companies was looking for someone with my credentials to do a project to find where the group’s money was disappearing.

He wasn’t interested in hiring a Big 4 firm for the assignment and wanted someone who would report directly to the Chief Executive Officer. The assignment was supposed to be low profile.

Within a week I was on a plane to Nepal and spent months at their lodges in the forest and then at headquarters.

My discovery led to the uncovering of a serious fraud and I also managed to save the jobs of at least 800 employees since the company was heading for bankruptcy.

After that, I spent time in Head Office restructuring and reorganizing their systems and plugging the gaps that had led to the original problem.

My next client was an international company in the energy sector and I had been the Audit Manager for their group company in Tunisia.

This was before the Enron fiasco and my assignment again was setting up systems for an important project as a consultant.

I did a great job – so great that they offered me a permanent job as Finance Manager and thus ended my first foray into independent consultancy and back to being a salaried employee.

I took up that dream again in 2008 and got clients and then after 3 years launched Karmic Ally Coaching in a completely different niche and service area with a stronger motivation and Big Why and that’s how you’ve found me.

One common factor during both times I went into my consulting self-employment business was the economic conditions were recessionary.

Even better is the fact that both times the business I ran was profitable.

With some smart and creative thinking, you can have your business launched in no time. If you have a clear plan, you can make this happen regardless of the state of the economy.

With experience comes knowledge and I’ve compiled it in 5 important things you need to think about before jumping into business.

5 Ways You benefit from starting your Business now

If you’re thinking recession is the worst possible time to start a business, please note this certainly isn’t the case! What is important is to take advantage of some key factors like I did.

These tips can help you take advantage of the recession to get your business off to a great start:

Your initial investment outlay and running costs are lower. It’s less expensive to start a business during a recession than at other times. This is because other businesses are offering deals left and right.

You might be able to get lower advertising rates as well as deals on supplies, inventory, services, and more.

If you plan things properly, you might be able to reduce your original capital outlay.

Remember I started my first business from a bedroom converted into a home office and used my computer laptop and mobile phone.

Somewhere my sub-conscious mind reminded me of the beginnings of Apple and Microsoft and even the beginnings of Infosys which was quite humble!

Provide excellent customer service. Excellent customer service matters. Between two businesses, with all things equal, the company with the better customer service always wins. After all, people always desire to be treated well.

In a recession, it’s possible that your competition has cut back on their customer service efforts. This gives you the opportunity to come in with top-notch service.

Make irresistible offers. In a recession, people are more likely to pay serious attention to the businesses that are giving greater offers. You can open your new business with a bang by beating out your competitors with an excellent deal.

If you maintain reasonable overheads, you could create an offer that keeps your margins healthy, cash flows good and provides an excellent offer to the customer.

Excellent employees or outsource services that you don’t need full-time. During a time of recession, you may find some excellent candidates when it comes time to do your hiring.

Because of other companies’ downsizing, you can snatch up some appreciative and loyal people that are knowledgeable and well qualified.

If the business doesn’t require full-time employees then consider outsourcing services you require to run your business.

Some of these services include book-keeping, website maintenance, tax filing. When the time is right for expanding your manpower, you will do it.

Getting a lead in the launch game. When you start your business during a recession, you’ll get a good head start over other businesses that may be waiting for a “better” time to launch. This means that by the time they do launch, you’ll be that much further ahead of the game.

Be economical and cautious with expenditure. Starting in times of recession forces you to be frugal about your business activities.

Because of the recession, you’ll make it a point to search for the best prices and the most efficient ways of conducting business.

You may do it this way simply because you have to, but in the long run, you’ll learn a very important lesson that can enable you to run a profitable business for years to come.

Instead of waiting for the “right” time, take action today.

That’s how I did it for both my finance consulting business and then when I launched my coaching business.

Luckily both times I had skills and credentials as well as references to land prestigious assignments even though I was a 1 woman show that got me into momentum and I knew what steps were required at each stage.

I’ve seen too many professionals quit cushy jobs and go into business and then return to jobs because they didn’t have a plan or had not thought through things clearly.

Mind you, there isn’t any shame in having failed in your start up and many times firms want such professionals because of the wealth of unique experience they bring with them. It deserves to be mentioned in your Curriculum Vitae.

It’s when your heart is truly set on doing your own thing that you have to prepare properly for success.

Mistakes are made which can prove disastrous for a new business. The first one is not checking if you are cut out for business.

That’s why when I have professionals ask me about leaving corporate jobs and starting their own businesses, I ask them all the uncomfortable questions upfront.

My advice is to always have the ducks in a row before jumping into business.

Instead of surfing the internet looking for information (which is a good idea by the way), why not focus on yourself instead and gather information in a methodical manner?

I’m asking you to do your homework first and take deliberate action to achieve your dream.

Additional Resource for professionals who are ready to play their A Game in business

If COVID-19 job loss or change of perspective has made you consider going into business, self-employment or freelancing, you want this Business Planning Bundle. It includes a workbook that asks all the important questions and some cool bonus resources that will give you a jumpstart to achieve your dream.

In this workbook, you will begin to think more about your plan and consider 5 tough areas so that you transition from employee to business person with clarity and focus and understand what you next step should be to Project Independent Business.

That in itself is worth investing in.

And it’s not just the workbook. I’m giving you additional support with these bonuses that will make all the difference in helping you decide on your course of action and prepare for your new avatar.

Curious?

Get all the details on my Business Planning Bundle here.