This is Part 7 of an article series which takes a look at 7 steps to lift yourself out of the recession, no matter how deep it gets.
As the unemployment stands at 10% and the chances of an economic recovery slip into history, millions of American’s are going to soon realize that they are going to have to take matters into their own hands.
They are going to have to create their own jobs by creating their own businesses. Many of them never thought they would need to create their own business. This wave of new business ventures is going to bring the culture of new business into the mainstream culture.
Within a few years, when a young person is asked what he/she is going to do, they will no longer say ‘I’m going to x college in the spring’, but instead they will say, ‘I’m going to help my dad/mom start a business in the garage’.
This is the kind of cultural shift that I see coming and with it the economy will change. For one, a lot of businesses trying to get started will increase the demand for businesses that cater to small businesses. Therefore consider starting a business to help small businesses (I'm considering this idea myself).
Personal networking is also going to be very important and I’m sure social media is going to play a large part in that. But more than that, small businesses need to build a network of suppliers and customers that are reliable, consistence and profitable. They cannot waste much time with mediocre suppliers or business partners.
Once these networks are well established, a small business acts like a big business and the established big businesses have a difficult time competing with them. Big businesses are going to feel the increased competition.
With money and jobs bleeding out of big businesses because of malinvestments, they will also have to cut spending on lobbying the government for price, wage or supplier controls or any other way to create and maintain a competitive advantage.
The culture of small based businesses will grow and fill the gap created by the collapsing phony economy 2.0. The unemployed will become self employed, risk takers that bring a new wave of products and services into the market.
But creating a business has never been easy and many times results in failure. The collapsing economy will take time to reveal new consumer needs. New ideas may be needed during the collapsing period and then no longer needed a short time later. Other ideas will not be visible until competing ideas become too expensive or in short supply.
It will take relentless will and vision to drive your business into the future. It will take self motivation to get up each day and try something else or continue calling suppliers or potential customers. It will take a lot of energy, which is why the young college aged will likely be the foundation.
Here are a few good books to help encourage you.
Will and Vision: How Latecomers Grow to Dominate Markets