Alberta’s Recession Can’t Stop Small Businesses

Recession? What recession? The numbers are in and they tell us that a surprising number of small businesses are getting off the ground.  In the first three quarters of 2015, the city of St. Albert issued 387 new business licenses.  136 of the licenses issued were for home-based businesses.

Why are a record number of entrepreneurs starting their own businesses when times are so tough in Alberta?

• Jobs are lost and new jobs are scarce, so people start their own businesses to replace lost income
• A weak Canadian dollar provides opportunities to offer products or services that may otherwise have to be imported at higher cost
• Established companies don’t like to take on new staff, and outsource more. This is a great opportunity for a start-up to offer its services on a contract basis.
• Low-overhead, home-based businesses offering unusual or cutting edge services and products can create or find more opportunities during a recession because there is less competition
• It’s a buyer’s market for most equipment, real estate and human resources, and many suppliers offer more favourable credit.

Tips for starting your own business:

• Research, research, research! Be clear on what makes you unique, who your competitors are and what they offer.
• A solid business plan is required.
• Secure your capital. Many new businesses fail because they don’t have enough money to carry them through the difficult early stages. Banks are rarely the answer as they tighten up lending during economic downturns. Fear not! A surprising number of your friends and family who are skittish about the markets may be more than willing to invest in a promising start-up run by someone they trust.
• Creative marketing is a must. Conventional advertising is expensive. Many new businesses look to creative and unconventional marketing techniques which tend to be low-cost or free. You make a stronger impression when you engage the consumer on a more personal level with targeted creative advertising.
• Hard work. Don’t set out on this adventure unless you are willing to put in long hours.

Now is not the time to ignore adequate insurance! It can mean the difference between a setback that sinks your company or being able to push through and grow. Drayden Insurance is your insurance broker in Edmonton. Call 780-482-6300 or contact us directly for more info.