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Is 2022 a good time to start a business?

Based on the latest economic news, most people would assume that 2022 is not a good time to open a small business. But it's important to know about

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Based on the latest economic news, most people would assume that 2022 is not a good time to open a small business. But it’s important to know about the strategies many owners used in previous downturns to get companies off the ground.

Just because inflation is becoming entrenched and the stock market is on its way to carrying territory, almost any hard-working person can still generate the capital and run a business with good results. What are the tactics that skilled entrepreneurs use in difficult times?

In addition to generating seed capital by cutting their monthly expenses, they use the go small principle to test their ideas before entering into a larger financial commitment. They also stick to their current job of sustaining their lifestyle while building the new business.

Other effective tactics include doing extensive research on potential competitors and the market in general before diving into battle. Cost-conscious founders also tend to work from home to keep overheads as low as possible.

Lastly, they spend time and money on targeted marketing plans to reach the exact demographic most interested in buying their products and services.

Here are details on some of the most popular and effective tactics to get started in a slow economic climate.

5 Effective Tactics to Start a Business in 2022

Is 2022 A Good Time To Start A Business

1. Generate capital by reducing monthly expenses

In difficult times, capital is the thing most entrepreneurs lack. So, any technique that generates additional funds makes good business sense. Some owners sell assets they already own, borrow against their homes, withdraw cash from life insurance policies or refinance student loans.

Of all these approaches, making an education debt refinancing agreement is almost always the wisest choice. Although no two situations are identical, working people who have outstanding student loans can release capital for a business venture by refinancing an existing school loan or loans in a new agreement.

Not only can the new structure of the debt provide for additional capital, but it is also often possible to access better terms and other loan terms when you choose to refinance student loans.

2. Start Small

There is good sense in minimalism when money is scarce and the economy is in a negative place. Inflation, stock market problems, international supply chain crises and global political unrest are all clear signals for founders to test their ideas before proceeding with a major launch.

For example, instead of sinking a large amount of cash into advertising and website creation of an e-commerce company, it would be wiser to work with a simple website and shopping cart containing only one or two items for the first few months sold.

If one of the products performs well, focus on it and hone a budget-oriented promotional policy around that item alone. This is of course just a hypothetical situation, but the principle is to stay small during the early stages of trying to establish a customer base.

This way, even if you make a mistake, the mistake will not wipe out your capital account, and you will be financially stable enough to start over.

3. Keep your day job

The old adage of keeping your day job applies to start-ups in 2022. The concept is especially relevant when it’s your first attempt at independent ownership.

Even if you work a full 40-hour week at your current job, use free nights and at least one weekend day to build your new business.

Some of the most famous industrial gurus of years ago used this very strategy to turn their own ideas into commercial successes.

4. Do intensive research

When you change your career, research ultimately pays for itself. Especially if you use the long hours to study competition and look for niches that are not overwhelmed with products, services and successful companies.

Remember that it is good to create a detailed three-year business plan instead of the usual two-year version. While it is not necessary to develop a totally unique presentation, there is great wisdom in spending a fair amount of time on purposeful research on your proposed area, customer profile, pricing, and other essential components of a typical business plan.

5. Work from home and keep things simple

Beginners in the digital age can usually survive without rented office space. In a year or two, your organization may become large enough that paying monthly rent and signing a commercial lease is a valuable idea.

But for now, expenses can be kept to a minimum to work from an extra bedroom or a remote corner of the garage.

For many new organizations, office rentals are the single largest monthly bill they have. Avoid paying for space unless absolutely necessary.

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Writer: JR

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