Entrepreneurs Have Opportunity in 2009

This morning’s Wall Street Journal says, “Yearly Job Loss Worst Since 1945.”  Evidence of a recession is predicted for the foreseeable months and job losses will continue to mount.  If you’re an entrepreneur, and your business idea requires labor, now is the time to start a business.

Existing companies operate with a certain cost structure which will be difficult to adjust.  Cutting employees is the easy move but because so many workers are on the street, wages are coming down quickly.  What will employers do about their existing workers, cut their salaries?  That will be difficult to accomplish.  Existing companies are at a disadvantage not only in their labor cost structure but their focus remains on internal cost control and not on customers.  This makes for a superb time to start a business with a lower cost structure creating an advantage to offer the same or similar service at a lower price for customers.

Case in point is Dana Stevens, who was quoted in the Wall Street Journal article as trying to find a job.  She tells prospective employers that she was earning $60,000 per year and employer’s response is that current candidates are willing to accept $40,000 with the same skills.  That’s a huge drop and I expect that will continue.

So what are you waiting for?  Get in the game, place an ad on CraigsList.org, hire a few good men and women at the right price and go for it!