With all the talk about recession and potential depression, I thought I should lighten up the mood a bit with some optimism.
The Problem
The whole problem goes back to banks making loans to people who didn’t pay them back. Consequently, banks are reluctant to make any loans these days. If you’re interested in starting a business, it could be tough to get started. As fewer small businesses start up, vendors begin to have trouble getting new customers, which is crucial to their growth. Thus, the vendors start to struggle and so they lay off employees, which in turn makes life tough for their vendors. It’s a vicious cycle.
This is the pattern everywhere, including Silicon Valley, but there may be a ray of hope.
The Good News
With unemployment as high as it is, the scene has become and employer’s market. Times aren’t so good if you’re a worker, but if you have an idea and a little bit of money, now may be the time to kick off that start-up you’ve been mulling over. Remember, Silicon Valley is flooded with recently out-of-work developers who are itching to get back to work. I have no doubt that many of them have some money stashed away (they did work in Silicon Valley).
The question before these developers is whether they will wait for their luck (and the economy) to turn around, or whether they’ll seize the day and start their own business. Remember, it’s an employer’s market. Whoever starts up first has their pick of unemployed developers. Those who are out of work right now aren’t out of work because they’re lazy, irresponsible, or ignorant, they’re out of work because times are tough. There are plenty of competent, hard-working, intelligent people available for hire, and they’ll work for almost anything at this point.
Conclusion
Even though the economic climate isn’t suited to risk-taking right now, it is perfect for finding cheap, quality labor. Ideas still abound, but people are waiting until market confidence improves before starting up their business. By then, though, the labor market may not be so good. Even if times are hard, it’s a good idea to get a foot in the door now. Sales may be weak for a while, but it is an excellent time for securing competent employees. Foundations are important, and now is the perfect time for laying that foundation.
