Re: Training Business

Hi Rajesh,
As I've said in an earlier post I don't see this credit crunch!! My business is going well and the same goes for others I know, , yeah there is a slow down in the economy, I think it's mainly media hype along with the banks panicking and so not lending money so easily.

If your research suggests there is a demand for it then you need to start building your company now not in 12 months or something else could come up then and it'd be another 12 months!

DISCLAIMER
the view in this post are strictly those of the author,and he cannot be held accountable for any advice given.

Rajesh go for it all guns blazing.

Paul

ELECTRICAL CONCEPTS
Design, Install, Maintenance.
Domestic & Commercial

www.electrical-concepts.co.uk

call 0800 458 9118

I'm in the build up to setting up on my own, effective start daye 1/3 or 1/4 2009. So I've got the luxury of a little time to plan things through and see how the economy goes.

Couple of observations though :

1) I loath the press, they seem determined to talk the UK and indeed the world economy into a down turn.

They are all bad but the BBC as one of the most 'respected' broadcasters have a large responsibility, sic. their report on the 10 O'clock news last night - they quoted George Soros as saying that a 60 year 'boom' had ended. This was the headline at 10.00pm. However, if you bothered to listen to this item in full (and it was the very last item on the news at 10.25pm) in fact George was saying not only that there wasn't going to be a world wide recession (he did say that he thought one was likely in the USA but didn't know how bad it would be) he also said that this ending 60 year boom was really only the end of good times for the major financial institutions and people like him.

The end of the BBC report even included comment from an American VC business saying that the current economic climate would be good for them, buying up failing businesses and selling them for a profit.

The way I read the report was that, people at 'street level' wouldn't be too badly affected and that good entrepenuers would do well, which brings me on to point 2

2) If every one else around us is panicking, this means our competitors who are only used to the good times aren't going to have their eyes fully on the ball. The faint hearted won't start their businesses at all and we have the market to ourselves. In my business plan I'm even stating that if my market contracts I'm simply going to focus on others market share by doing things better and adding more value.

Remember if the ecomony does downturn (and I'm not convinced that this is actually happening - after all the economy is still growing !) then people with jobs are in as much danger of being made redundant as entrepeneurs are of going out of business (probably more so I would suggest)

Hope that this helps !

Hi Guys(Paul and Phil)
Many thanks for your feedback on my business idea. I do believe there is a need for my service. Even though its very competitive!!!! however people will not stop using computers. I am in the process of doing the market research and focussing on niche areas that I know. I am also developing my business plan.
You have given me hope!!! and much food for though
Kind Regards
Rajesh Malhotra
RMalhotra Consultants

Hi,

First of all, I do think the whole credit crunch thing is real, in so far, that when banks end up creating 40-50 billion dollar holes in their pocket books the only entity they can turn to is the Federal Reserve (they can't borrow from each other because they're all in the same mess). They only way the Fed can respond is by injecting more money into the system (and everyone knows and expects that) so that creates inflationary pressures - which reduces the number of policy options the Fed can execute even further.

So how does that affect us ? Credit dissappears. Credit is like an oil thats seeps into every little crack, crevasse, and hole in the economy... The whole economy runs of credit. From big global instutions down to cornershops....

e.g.
Give me X on credit, I'll pay you back in 6 months, because I will have used X to increase my revenue , expand my business, and to pay you back.

If you remove credit, you remove rapid expansion. Simple as that.

So does that mean we're all doomed ? No... I just means that business/clients/consumers will shore up their profit margins/savings for the time being until the storm passes and those credit lines get restored.

So anyone with a new business idea in times of gloom should always construct their offering or pitch around: my product/service ABC is going to save you money, protect your margins, and cut your costs.

Its all about cost-cutting. Helping people cut costs. So that's how I would go to market.

Regards,
Ijonas.

Couldn't agree more with the previous comments Ijonas

Phil