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With the UK Economy in tatters —it's time to start a business.

Updated: Jan 9

The shortest leadership recorded in the history of the UK in these recent years, with Liz Truss quitting after 44 days. The chief whip should be serving detention to the current government to ensure their house is in order.

Since the Boris Johnson scandal over COVID-19 and the conservative vote to bring in Liz Truss as Prime Minister just after the passing of Her Majesty Queen Elizabeth II was all rushed and had no planning, this is why chaos arrived.

The UK economy has predicted due to a sharp increase in prices fall into a recession. Since Liz Truss's short stay as The UK Prime Minister, we have seen two departures of MP, we heard of bullying and infighting frankly a shambolic ruling with no headway to fix our economy.

After all this, as of today, the Prime Minister become the caretaker until the next Prime Minister is sworn in through another in-house vote or a general election is offered. As of 25-10-2022, Rishi Sunak is the next Prime Minister of the UK, the previous choice was in the race but did not get it because it was not meant to be this time around.

Business owners see how, consistency, commitment and a strong desire to achieve your goals get you your chair in this life per a recent example Rishi Sunak was the Chancellor of the Exchequer for 2 years (2020-2022), then Chief Secretary to the Treasury (2019-2020) for a year, however, he is a Member of Parliament for Richmond since 2015 and made history.

Rishi Sunak is my asset, however, in terms of mirroring achievement in 2015 Girlfridayz was reborn and in 2016 became Self-Employed Limited, then trademarked in 2017 under the mark Girlfriday, Girlfridayz®. Gained The Be Mogul Business Award 2018-2019 (Recognising The Most Influential & Inspirational Black Business Owners In Britain).

In 2019 The Core Assets Of Marketing With Its Dual Implementation Support System - The Cellar and The Core Assets + The Cellar started and ended in 2022 the books everyone talking about and we're making history.

Both marketing books have a specific purpose and revolutionise the publishing industry because they are the only books that are attached to an online business mentoring support system — The Cellar

The UK economy demand is massive as we are seeing new social housing estate development in several areas of London meaning the population of the UK growing as well as permission granted by the council to improve the road and set up electricity networks under the ground unlike in 2007.

Many well-known businesses launch during economic downturns and thrive to be household names. JD Sports, Wilko, Pure Gym and Sipsmith launch thrive during economic uncertainty. We have worldwide examples including global giants, Amazon, Microsoft and Disney. More recently Uber, Lime and Airbnb.

The Companie House reported that new businesses are launching at a faster rate than ever before. The number of incorporated companies increased by almost 1/3 in the third quarter of 2020 compared to the same period in 2019. meaning an estimated 51,269 new businesses started in three months — The largest increase recorded since records began.

Why Launch a Business in a Recession

Because it is the best time to prosper and your business is more likely to be successful due to the benefit you gain as a startup during a recession time. However, a depressed economy is not ideal, start-ups can be well-placed to take advantage of emerging gaps in the market or shiting consumer spending trends, laying the foundation for growth as the economy improves.

An example of this is in 2007 the UK was in a recession and we at Girlfridayz found a gap in the market. We started Virtual Girl Fridayz online admin services for larger businesses. At that time only 5 of us started a remote admin services business. The market did not have many competitors as the services were new. The early adopters took the services, the early majority went with it, and the late majority, the laggards dismissed it because they believed an admin should be in the office. But what they did not know — the early innovator at Girlfridayz put it all in The Manual.

There’s no substitute for rigorous business planning when starting up. But if you’re concerned about the viability of launching your business during a recession, here are 10 reasons why starting up may be a good idea.

Here are 10 reasons why you should start your business and let Girlfridayz support you

  1. An established business may be struggling

Start-ups can be the equivalent of the new entrant the disruptors facing established companies. Existing retail and online businesses slowly evolved in the face of a challenging environment with many existing companies having plans that assume the economy will continue to perform well. Their costs are committed to overheads like retail premises and employees. However, established businesses need a PESTEL analysis update to remain relevant and update their Business Plan.

Large Businesses may have positive cash flow reserves, but they can observe cautiousness becoming slow to act, leaving them vulnerable to sudden changes in customer spending. Start-ups do not have existing processes or overheads. Meaning startups can operate leanly from launch, adopting new flexible ways of working — using outsourcing and new technologies to deliver products or services that are different offering more value to customers at a lower price than existing businesses. An example of the latter is Netflix, Blockbuster did not see them coming and laughed at them, and now Netflix is a household name worldwide. However, there is one Blockbuster left (anyone know what day it is please, It's a Friday).

2. Interest rates may be lower

In a struggling economy, you enjoy lower interest rates, therefore, it is time to borrow money to launch your business. While it can be bad news for established businesses with cash reserves, it can be good news for start-ups looking to secure startup loans with a low interest rate. Meaning, it could cost you less to repay a loan, and credit facilities from credit cards to credit line suppliers can also be cheaper.

3. Increased support for start-ups

Start-up companies are often seen as the key to shifting faltering economies into a higher gear. Therefore numerous schemes, grants and incentives are designed to support the early growth of small businesses. Besides national grant schemes such as Innovate UK and the National Lottery Heritage Fund.

It's worth exploring tax and benefit schemes the UK government offers for start-up businesses. They have incentives for people on Universal Credit to start a business. You can view all the finance and business support sites that list the different sources and grants available. You can unleash all the business and marketing support services that we offer start-ups at Girlfridayz Limited to unleash your true potential and grow whatever skills you want.

Here are 8 ways to unleash your true potential Girlfridayz says

4. Securing investment may be easier

Raising money to invest in your start-up idea can be easier during financially challenging times. If stock markets are in freefall and interest rates low, investors often look for other ways to invest their money and may be more interested in funding your venture.

Find out more in our guide to business funding

5. Your business can recruit better staff

Job redundancies are a sad reality of an economic downturn as businesses look to cut costs. This can see an influx of talented, experienced professionals into the job market, all chasing fewer job vacancies. Your start-up could be more attractive to skilled job seekers during a financial downturn. Salaries also tend to be lower, allowing your business to keep staff overheads down while attracting higher-calibre employees.

6. There is less competition

Many people don't want to take risks during economic downturns, battening down the hatches and are less willing to risk savings in starting a business. This clears the path for your start-up, as fewer competitors are entering the market.

7. You are in a position to negotiate better deals with suppliers

When consumer spending ties up and businesses fold, suppliers are often hit hard. With stock to be shifted a start-up can be in a stronger position to negotiate deal prices with suppliers. It may be easier to get favourable credit terms and significant discounts for bulk purchases as suppliers look to protect their cash flow and move stock on. If you just started up less than 3 years ago, it's worth calling on existing suppliers to see if you can renegotiate a deal.

8. Materials and overheads can be cheaper

When a country faces depression, prices are slashed and bargains can be seen. This is true of overheads, such as retail, warehouse or office space, when empty can be snapped up for a lot less than its original rental or buying price. Cost can fall across the board, ie:- the cost of materials used to create products through to expenses of office supplies and telephony, IT equipment.

9. Your business is more agile

Though times can result in start-ups that are leaner, more agile and willing to innovate. This is an excellent blueprint for your business as it grows. Ie:- Girlfridayz created 9 innovations for your business startup and existing businesses to grow their business. You'll get these progressive innovations in The Core Assets + The Cellar: A Winners Combination. These innovations can aid sustainability and growth over the longer term in your startup or existing business. Your company culture, regular financial review forecasts and keeping a close eye on expenses as well as the willingness to change the course of action when necessary are great habits to get into.

10. People want cost-effective solutions

The economy affects customer spending, therefore customers are increasingly looking for good-value products and services providing value for money at an excellent quality that lasts (visit our website as well as cheaper solutions at a lower quality as they cut back.

With lower overheads, start-ups can be well-placed to offer lower-cost products and services, winning customers from established businesses. New businesses can also spot solutions to customer needs and problems, bringing new products and services to market that better meet shifting consumer appetites. ie:- A ready-made business bought off the shelf --- no experience needed and free training sound goods head up this way and purchase your first franchise startup as a franchise is a good way to start up your business too, you can even get a start-up loan for it.

Bonus content

Thinking of starting a business? Check out our online courses on being an entrepreneur and learn marketing and its application to business from the start learning the foundation of business and marketing.

With our 4-week short course on Entrepreneurship Beginners and Advance

For beginners Advance

  • Business Intelligence Profit Maximise

  • Acquire Customers Turn Prospects into Customers

  • Funding for your business's Social Media Marketing & Tools

  • Advertising The Marketing Mix

  • Competitors Analysis Girlfridayz Roadmap

Plus e-books on finance, leadership, coaching, managing debt, SEO, Backlink, Communication, productivity, content writing, closing deals, automation, playbooks and the manual.

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