Taking the Red Pill During Economic crisis
The world economy depends on many factors. Either it may be global politics, finances, war aggression and supply and demand and many other complex factors. Out of all these, another feature that worth noting is the sentiment of people. The recent pandemic situation around the world has crippled economic activities around the world. And the most affected are the startups and early-stage ventures.
When it comes to finding a career path, we are always in a dilemma. Whether to choose an already established organization where my work role is fixed and my path or domain is fixed. Or else choose a new startup where your role will depend and will be involved in different roles based on the domain of startup as the team will be very small.
Now during the economic crisis, the worst affected will be the startups as mentioned earlier. This is because large organizations will have already huge reserves of cash and can sustain to survive in the market for some time even with losses. But when it comes to startup the cash reserve is very small and it cannot able to survive with no demand in the market for a long time. Hence startups will the worst affected in times of crisis.
During the present pandemic of covid19, we can clearly find the news related to different startups struggling to survive in the economy. They are left with no option but to fire employees to save money for the company.
What happened during the great depression of 2018
Everyone knows about the great recession of 2008. The world economy has seen the worst face. Bank started to shrink the credit availability and even large organization failed to sustain in the economy. Thought the effect is not seen in India largely, many developed economies have faced huge losses.
During this time the startups are also supposedly suffered a lot because of the drop in the economy, suppression credit, careful investment from investors and many other factors. But as said, “Every worst situation can be turned into a great opportunity.” This is visible from the situation of 2008. That is the time when some of the great companies of the world are founded. Many unicorns that we talk about today are founded during that time.
This clearly shows how can a situation can to turned to our benefit. To name some of them are WhatsApp, Instagram, Uber, Pinterest, square, slack and many more. This list Is large and all of them lead the industry in their respective domains.
So what does the recession in the economy to hold for? Is this the right time to choose the Red pill over the Blue Pill. It completely depends on the perspective of the individual How can one view at the situations.
Everything comes to a single point that is viewed by an individual. The present situation of covid19 might be leading to an economic crisis. And this situation can also be taken as an opportunity by many individuals and start their own ventures. But every opportunity has its own challenges and problems that need to be tackled. Stepping in to choose the Red pill is no simple decision with less demand in the market due to crisis ad damage of sentiment of people and also unavailability of resources.
Hence if you are risk takes and can take and face the challenges, convert this hard times to your face. Find that one domain which will solve a problem and established into a large venture. It all comes out to one idea that is all that it is needed.
What is the situation of already Established Startups
When it comes to already established startup, their domain is fixed, they are built considering the old market scenarios. But the economic crisis will result in a change in the market behaviour and this might be the reasons new ventures which on its foundation will be built on the new market conditions will be successful in comparison to the old startups.
Consider the situation of a company that is built a few years before the crisis. It was founded on the market research done at that point in time. And hence all its foundations and operations are built focusing that market situation. But the Economic crisis arose later changed the market scenarios. And to adapt to the new market scenario this startup needs to shackle the foundations itself and will need resources and time to adjust.
But when it comes to new startups that are built in the after the economic resources, though the resources are less available it will be built considering the new market situation and will work on that path. Hence it will be more suitable with and hence grow rapidly in the market.
So is the present pandemic an opportunity of the newcomers or will the be a difficult path? The answer to the question is only know in the future. since the future is uncertain as of know.