Business leaders are concerned about a looming downturn, but entrepreneur Corey Shader says that can be a great opportunity if they follow some basic rules.
FORT LAUDERDALE, FLORIDA, UNITED STATES, September 15, 2022 /EINPresswire.com/ — Is the country headed for a recession? Is it already in a recession? Is a bounce back on the horizon?
These are questions that most business owners are struggling to answer every day. Entrepreneur Corey Shader knows this well, through his years of experience as a consultant, investor, real estate developer and founder of several companies.
Recessions, or likely economic downturns, can scare a lot of people. But, savvy entrepreneurs have the ability to not only protect their business but innovate during these challenging economic times.
During the middle of the last major recession in 2008-2009, some truly innovative companies first hit the market, according to Corey Shader. These include ride-sharing service Uber, payment processing system Square (now Block) and short-term rental website Airbnb.
All of these companies had one thing in common — they appealed to people’s present emotions toward what was happening around them. Uber and Airbnb appealed to members of a thrifty younger generation who were yearning to travel on a budget. Square appealed to people’s new and sudden distrust in the big, traditional financial providers.
The founder of Square, Jack Dorsey, also founded Twitter. As he once commented about his startup:
“There is no better time to start a new company or a new idea than a depression or recession. There [are] a lot of people who need to get really creative to create something new.”
While consumers often cut the excess during economic downturns, they don’t stop spending altogether. Instead, as Corey Shader explains, they look for more affordable solutions.
McDonald’s is a great example of this. During the recession that followed the end of World War II, the fast food powerhouse did away with carhops and chefs who would prepare all orders as they were put in. In their place, they created a more streamlined approach to delivering customers a fast, affordable meal solution.
Economic downturns are also a prime time for well-established entities to institute big changes. Adobe was one of the first software companies to turn away from selling downloadable software licenses to the now-popular Software as a Service (or SaaS) model.
Before they did this in 2008, the company was floundering to say the least, according to Corey Shader. In the 10 years that followed, the company’s revenues increase three-fold, with Adobe’s stock price increasing an average of 29% per year.
So, what are the lessons to be learned?
First, Shader says that entrepreneurs always need to be opportunistic, but this is especially important during an economic downturn or when one looms in the future.
Second, entrepreneurs can’t be afraid to try something new. While challenging economic times may not immediately seem like the best time to do this, the complete opposite is actually true.
Finally, entrepreneurs need to understand who their customers are and what they want and need at all times. If a change in philosophy or approach is doable to adjust to the changing times, Corey says business leaders should meet their customers where they are. It’s likely to have long-lasting positive effects for the business as a whole.
Jessica Brown
Mercury News Media
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