Ain't Got No Job Offer? Then Make Your Own!
By Sakina Walsh JGSM '10
Issue date: 4/1/09 Section: Careers
Is job-hunting for business students this year strangely reminiscent of having a huge high school crush? The anxious waiting by the telephone, the nervous excitement when it finally rings… the disappointment when it's just Mom. Calling for the third time today. About her root canal.
The difference is that now we're awaiting a phone call not from the homeroom hottie, but from a company that might finally be responding to one of our countless résumé submissions. Unfortunately, most of us are still waiting on that call. At this point, many first-years are planning to intern without pay this summer, while the only banking being done by i-bankers is on Plan B: rigging the lottery. The financial crisis is on the lips of every politician as companies continue to topple over, precipitating waves of layoffs. All of this seem somewhat dissuasive to potential entrepreneurs with a good business idea. But veiled beneath the grim headlines is an opportunity no Johnson student who's considered starting her own business should ignore.
Let's face it-your opportunity cost has never been lower. The guy that just delivered my pizza will be making more this summer than a lot of us will. At least he has a job. That pays. But the lack of ideal employment alternatives isn't the only reason to start your business now. As counterintuitive as it seems, a recession can create optimal conditions for a new business.
A recent article in Entrepreneur magazine describes many financial advantages to starting a business in a recession. Everything becomes cheaper during a recession, which means lower labor costs and cheaper supplies and equipment. Hard-pressed suppliers are offering better credit terms. It's too late for your competitors who launched their companies during a stronger economy to fully take advantage of this. They're locked into contracts, they've already purchased their equipment, and they can't simply give every employee a pay cut. Your cost advantage will allow you to offer lower prices, which is precisely what consumers need in a recession.
The difference is that now we're awaiting a phone call not from the homeroom hottie, but from a company that might finally be responding to one of our countless résumé submissions. Unfortunately, most of us are still waiting on that call. At this point, many first-years are planning to intern without pay this summer, while the only banking being done by i-bankers is on Plan B: rigging the lottery. The financial crisis is on the lips of every politician as companies continue to topple over, precipitating waves of layoffs. All of this seem somewhat dissuasive to potential entrepreneurs with a good business idea. But veiled beneath the grim headlines is an opportunity no Johnson student who's considered starting her own business should ignore.
Let's face it-your opportunity cost has never been lower. The guy that just delivered my pizza will be making more this summer than a lot of us will. At least he has a job. That pays. But the lack of ideal employment alternatives isn't the only reason to start your business now. As counterintuitive as it seems, a recession can create optimal conditions for a new business.
A recent article in Entrepreneur magazine describes many financial advantages to starting a business in a recession. Everything becomes cheaper during a recession, which means lower labor costs and cheaper supplies and equipment. Hard-pressed suppliers are offering better credit terms. It's too late for your competitors who launched their companies during a stronger economy to fully take advantage of this. They're locked into contracts, they've already purchased their equipment, and they can't simply give every employee a pay cut. Your cost advantage will allow you to offer lower prices, which is precisely what consumers need in a recession.
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