Starting a small business can be difficult in normal times, and even more challenging in an uncertain economy. The pandemic brought disruptions in productivity and the global supply chain. Moreover, now inflationary pressures and threats of recession are negatively affecting small business finances and operations, as well as the ability for many entrepreneurs to secure a bank loan. With more than two years of uncertainty behind us, loan applicants are still being turned down for loans or receive less money than they asked for, compared to before the pandemic, and this is only expected to worsen. Fortunately, there are many business ideas with low startup costs including tech-related services, online retail consignment, social media consulting, and network marketing (which we elaborate on later in the article) that can enable individuals seeking entrepreneurship to pursue their dreams.
Future of Lending
Whether a business is looking to hire new workers, introduce new products, rethink its office space, or even enter a new market, there are several reasons securing a bank loan may be necessary. These upfront expenses for future growth will be covered by the loan, enabling the business growth to be maintained. Yet, research shows that during the pandemic, more than half of owners who sought loans were looking to meet their operating expenses rather than to expand their businesses. In addition, as banks are looking to flourish in an uncertain future and possible recession, they are more hesitant to lend to small businesses. This is because they pose greater risks than larger corporations, including poor credit and low income.
Heading for a Recession
With experts saying that the U.S. economy could be heading for a recession in the next year, the future of lending for small businesses will likely be just as, or more challenging than it was during the 2008 financial crisis. The 2008 financial crisis hit small businesses harder than large firms. Fewer businesses were started, many businesses laid off employees or closed outright, and commercial lending drastically decreased.
Other Funding Options
As business owners are finding it more difficult to rely on plans for investments in the future, they are resorting to other means. Data from the 2022 JPMorgan Chase Business Leaders Outlook survey shows that small business leaders are increasingly seeking untraditional ways to reach their goals. Nearly half of small businesses plan to use business credit cards to help raise capital — up from 38% a year ago — with line of credit funding being the next most common currency method. In addition, 68% of small businesses also plan to explore online lending options — up from 56% a year ago, the survey found. Flexible funding has become essential for current business growth, and aspiring entrepreneurs are seeing what it takes to persevere through times like this.
Looking to the Future
Even when grappling with the challenges of a global pandemic, the entrepreneurial spirit is still sewn into the fabric of the “American Dream,” and entrepreneurs are looking to the future. Now starting a business comes with seemingly more financial risk and having an accurate financial plan with the appropriate funds to start a business are necessary. Although this may be difficult, many entrepreneurs are determined to push through despite the risks of failure.
A study commissioned by Herbalife Nutrition and conducted by OnePoll earlier this year, found that to be successful, 88% of small business owners and employees surveyed believe people cannot be afraid to make mistakes. Making mistakes will give aspiring business owners time to reevaluate their current strategies and goals, which may lead them to consider other opportunities.
Entrepreneurship Opportunities: Finding the Right Fit
With the uncertain future of our economy, many individuals are looking to bring supplementary income streams to create a sense of security and freedom. Network marketing is a great opportunity during economic downturns as it offers flexibility, and the operating costs can be low. However, how do you find the network marketing company that is the right fit for you? Carefully researching the company is necessary.
1. Pinpoint the ideal product or service.
You will want to find a product or service that is not only unique but has also proven to have a strong demand regardless of the current trends or state of the economy. A consumable product that sells consistently and needs frequent replacement is a great option to consider. Nonetheless, the product or service should be something you are passionate about. That way, you will dedicate more time and effort to it. When you find something you enjoy, you will create value that attracts consumers and have the momentum to keep going.
2. Learn about the network marketing company.
Before deciding what network marketing company to move forward with, researching its background and about their products is necessary. The longer the company has been in business, the more experience it has to show. Does the company offer educational resources to its salesforce, employ experts in its industry, and give back to the community? A company with a good reputation, a long, successful track record, and a purposeful impact on society indicates that the company has loyal customers and employees. This will create more trust in the company and in you, resulting in more sales.
3. Determine your startup costs.
Once you identify the right network marketing company for you, determine how much it will cost to start. Fortunately, many companies provide inexpensive startup kits. However, you will still want to ensure it is refundable in case you are not satisfied with how things are running.
4. Study the compensation plan.
The company’s compensation plan will show you exactly how the company plans to incentivize and reward your hard work. Plans that are too complex to understand should be concerning. A more straightforward plan will highlight exactly how you can potentially earn income. Studying this plan will prepare you for any ongoing expenses necessary for maintaining sales. It will also give you an idea of how much income to expect, how frequently, and how long it will take you to reach your desired income.
5. Confirm access to marketing support.
Aside from your startup kit, having access to marketing support will help grow your business. The network marketing company you choose should help you identify the target market to better understand your customers and provide online marketing resources to help you launch effective promotions. Yet, understanding how to continue to use these resources it just as important. Therefore, you will want to ensure training will be provided.
6. Research training opportunities.
With these resources in hand, make it a priority to take advantage of training ― whether in-person or online. Consistent involvement with trainings puts you at ease in managing your day-to-day activities once you start. Ongoing training and connecting with people going through the same experience will also help keep you inspired and enable you to run your business more efficiently.
7. Ascertain opportunity for growth.
When looking to the future of your business, you will think about ways to grow and expand. Before securing your decision, ensure that the company has demonstrated continuous growth opportunities to help you reach your goals utilizing the resources and support provided.
Final Comments
Once you have made a list of several network marketing companies that meet your criteria, use your instincts to select the one that is best for you. There are hundreds of network marketing companies. With these seven steps, you can ensure you are choosing the best option for you.
There’s no doubt that entrepreneurship is one of the most fulfilling ventures. However, before taking a leap into your journey, it’s important to be prepared with the right resources, tools, and support. No matter what business you choose to start, every entrepreneur experiences challenges and barriers as they progress through their journey. Once you feel ready, and have put your plan together, the last thing you need to do is commit. The road may come with unknowns, but navigating the risks can be very rewarding. Interested in starting your own entrepreneurial journey? Visit IAmHerbalifeNutrition.com to learn how.
