Did you put your dream of owning your own business back into mothballs after the 2008 economic meltdown? Take them out, shake them out and put some reality into those dreams.Why Now?
This is the time to make the most of the business opportunities available. The economy has basically recovered, shown by the fact that:
- Unemployment is at the level it was before 2008.
- The stock market is experiencing new highs.
- The economy is showing growth.
When you buy a business opportunity now, you can take advantage of the positive financial environment. Shoppers are willing to spend money and the economic indicators show forward movement. All of this points to the fact that buying and selling is on an upswing. That’s when you want to own your own business.
Another good reason to take advantage of one of the many business opportunities now is because competition is lower. For reasons that remain unclear, fewer people are starting a business. In 2013 the rate was 0.28%, compared to 0.32 in 2011. Less competition means it is easier to find customers and suppliers.
Better Access to Credit
When looking at business opportunities, funding is always a consideration. The good news is that lenders are loosening the credit strings slightly.
It is true that it’s not all rosy and that loans for small businesses, which is how most business opportunities and franchises are classified, are still down compared to the period before 2008. A study conducted by Harvard Business School shows that they are down 20%, due both to the residue of the 2008 financial crisis and the higher rate of community bank failures. These banks could often be relied on to provide loans for small businesses.
But the situation shows improvement, partly due to competition from crowdfunding. Peer-to-peer funding, the form of Indiegogo, Kickstarter and Lending Club, are helping those wanting to invest in a small business opportunity.
Online lending possibilities are also opening up, with the entry of Square, OnDeck and Fundation into the lending market. All of these lenders have targeted small business loans, using nontraditional methods of funding.
The Tech Effect
Affordable, even downright cheap, apps are making it easier to run a company, so making a go of a small business becomes more realistic. With the advantages that come with cloud computing, small firms have access to necessary services for customer relations management, accounting and marketing for a simple monthly fee.
Advances in technology also make it easier to tap into the benefits of globalization. You are just as likely to have a customer in Europe, Asia or Australia as you are down the block, and communication is just as simple.
Waiting to make your dream of reality, not moving forward until you are guaranteed you have found the perfect franchise or business won’t help you chances to succeed. With the economy, funding and technology all supporting your chances of success, now is clearly the time to invest in a business opportunity.
SOURCES: Harvard Business School