Let’s address the significant issue at hand: the impending recession. It’s a reality that’s both frustrating and, at times, quite daunting. Now that we’ve acknowledged this situation, we can turn our attention to the more pressing matter: you.
Your current situation stems from the choices you’ve made. Of course, economic downturns, job losses, and stock market fluctuations have occurred throughout history and will continue to do so. Employment contracts can end. Economic cycles will repeat. Life can throw challenges your way, and it’s not always simple. However, if you aim to flourish while others experience difficulty, it’s essential to recognize that you possess the power to choose, and those choices fundamentally shape your life.
Mel Robbins, a globally renowned author and motivational speaker, highlights the impact of a recession mentality. “Perhaps it’s the terminology: recession, depression, collapse, layoff. These are potent phrases,” Robbins articulates. “Highly discouraging. We are inundated with them endlessly. They are omnipresent in the news.”
Yet there is a silver lining. Transforming your recession outlook is a conscious decision. “With the correct mindset, the market’s movements become irrelevant,” Robbins asserts.
Relying on the nation’s economic recovery before addressing your financial well-being is misguided. You have authority over your position in life, independent of governmental policies, financial markets, or an employer of a company you don’t control. As Robbins emphasizes, “Your mindset governs everything.” You hold the key to enhancing your financial situation—and now is the optimal moment to initiate that change.
What’s the solution?
If you’re eager to shift away from the recession mindset and choose to thrive, you must evaluate your alternatives. Look for another source of income? Pursue a secure investment? Seek financial assistance from relatives? None of these options are particularly appealing.
The crux of the matter is that to regain control over your earnings during a recession, you must manage your income sources. As Jack Welch, a business expert and the former chairman and CEO of General Electric, famously said, “Steer your own fate, or someone else will do it for you.” Those who supervise their income streams are entrepreneurs who, like you, made the choice to embrace their financial decisions and take charge of their future.
Robert Kiyosaki, the acclaimed author of the Rich Dad Poor Dad series, expressed that entrepreneurs who break free from conventional employment and establish their own revenue streams are best equipped to navigate economic hardships. They do not rely on an employer or the financial climate to dictate their income—they set those parameters themselves.
Data supports Kiyosaki’s assertions. A 2019 study from the U.S. Small Business Administration Office of Advocacy revealed that “the average net worth of self-employed households at $380,000 in 2019 was more than quadruple that of wage-earning families ($90,000).”
Small enterprises benefit not only their proprietors but also play a vital role in local communities and job markets. During a February 2021 event, President Biden remarked, “Small businesses drive our economic advancement; they form the connective tissue and the spirit of our neighborhoods.”
At another gathering in April 2022, following the implementation of the American Rescue Plan, President Biden elaborated on the significance of small firms. “Small businesses regularly contribute more than 40% of the gross domestic product in the United States. They generate two-thirds of all new jobs, employing nearly half—almost half of all private sector workers,” he stated. “Today, due to our economic strategy, more… small businesses are being established, and they’re creating jobs at an unprecedented rate.”
So why delay seizing your opportunity? Embracing entrepreneurship, particularly during this pivotal time in history, is not just a personal financial choice; it’s a commitment to the prosperity of the nation too.
Why now?
But isn’t embarking on an entrepreneurial journey too risky at this moment? Absolutely not. The reality is that launching a business always carries inherent risk, regardless of the timing. In fact, the economic conditions during a recession may make entrepreneurship a more stable option. A piece in Republic noted, “Because startups and private ventures typically have long horizons—averaging five to ten years—they… usually remain insusceptible to the volatility of public markets.”
Now, let’s examine the economic realities—not to dwell on familiar woes but to highlight how even during the harshest fiscal climates, there are avenues for advancement.
The U.S. experienced a recession from December 2007 to June 2009, the longest period since WWII, outlasting those from 1973-1975, 1981-1982, and 1990-1991.
Various job sectors—including executives, mid-level management, clerical staff, and laborers—faced risks. Even the healthcare sector, often deemed a refuge, reduced its workforce in areas. Companies that were not eliminating positions retracted benefits, including retirement and health coverage.
Does it really seem wise to rely on traditional employment when job security is clearly outdated? Eminent economist Paul Zane Pilzer noted a fundamental shift in worker mentality. The traditional career trajectory is evolving to be more entrepreneurial, he asserted, remarking, “For much of the latter half of the 20th century, the advice was this: Attend school, gain a solid education, and seek employment with a large corporation. Pursuing entrepreneurship was often seen as risky—possibly admirable but foolish… and perhaps slightly irrational. Nowadays, that perception has flipped.”
If the thought of becoming your own boss and seizing control of your earnings excites you, but you’re unsure if it’s the right moment, consider these points:
- If your financial situation is stable, investing in real estate now can be advantageous. If your business operates from home, you enjoy numerous tax incentives, including tax-deferred savings and various write-offs.
- The emergence of new online tools has simplified the process of starting a business, making it financially viable than ever before, with straightforward design templates enabling quick establishment of a web presence. Social media platforms offer limitless marketing, networking, and peer support opportunities.
- As an entrepreneur, your earnings aren’t capped by salaries or educational prerequisites; they are contingent upon your efforts and commitment to your enterprise. Moreover, the autonomy to choose your work environment and schedule is invaluable.
Where to start
If you’ve spent countless hours devising ways to cut expenses, why not redirect that time towards discovering methods to increase your income? A myriad of small business opportunities await, tailored to your interests, field, and budget.
In many respects, initiating a small enterprise has become simpler than ever before. As reported in Bank of America’s 2021 Small Business Report, “62% [of small business proprietors] have embraced new digital tools/strategies to adapt to the pandemic,” which involved engaging customers and staff virtually while leveraging social media. This virtual strategy can extend businesses’ reach to a wider customer base and broaden their search for talent.
Additionally, findings from the UPS Store® 2021 Inside Small Business Survey indicated that “majorities of the general population and small business owners (56% and 67%, respectively) reported intentions in the past year to increase their purchases of products or services from small businesses.” Despite the economic hurdles, consumers continue to support small businesses and the offerings they provide.
Online classes and enhanced networking opportunities also offer significant advantages to novice entrepreneurs, equipping them with the skills required to launch and thrive in small businesses with increased confidence.
Pilzer concurs: “Today’s greatest prospects lie in becoming an entrepreneur.”
Why wait?
“Can you envision the potential for yourself, your business, and your home if you were to embrace the opportunities arising from this recession?” Robbins inquires. “How transformative would your life be? What an incredible shift.”
However, every aspect of existence continues to become more costly. As of January 2022, 64% of Americans were living paycheck-to-paycheck, according to LendingClub and PYMNTS’ 7th Paycheck-To-Paycheck Report. In Rich Dad Poor Dad, Kiyosaki cautions against the lasting consequences of this lifestyle: “Financial hardship is often a direct result of individuals dedicating their entire lives to serving someone else. Many will find themselves with nothing at the conclusion of their working years.”
Each of us will feel the impact of the recession in various ways, making it easy to find motivation to launch your own venture. Why not tune out the negative rhetoric and shift your focus to a constructive strategy for the future? By taking charge of your income sources and time commitments, your financial resources extend further, your mindset improves, and your future becomes more safeguarded.
You’ve always aspired to be your own boss. So what holds you back? Stop convincing yourself that it’s too late or that you’re unqualified. Avoid listening to naysayers who claim now isn’t the right time, and instead, heed the entrepreneurs who insist that the present moment is optimal for starting a business. With your enthusiasm and commitment to hard work, realization of your aspirations is possible.
Now is the moment to steer your destiny.
