Let’s face it, recessions don’t tend to be fun times for most businesses, and you’d think that anyone contemplating starting a business during a recession, or as an economy is slowly and painfully recovering from one, must be stark raving mad. Chances are, they probably are, but that can be a good thing… and we could do with some more of these people right now, and always!

It’s especially times like these where free thinking creative but pragmatic individuals, not bound by societal norms, the opinions of others, or traditional business building paradigms shine. They see opportunities and possibilities where others see doom and gloom. In the face of constraints and closed doors, (maybe even the loss of their job), they get resourceful, determined, driven, and their creativity goes into overdrive.

If you’re one of these people who can see opportunity and it excites you, but you find yourself not taking action for any of the reasons, excuses, or myths below… then it’s time to really challenge your thinking.

Myth # 1:

I need money!

Yes, can’t deny it. It’s nice to have some money when you’re starting or building a business, but you don’t need it. In fact, having “enough” money can often have a very negative effect. It can stifle creativity and resourcefulness, and it can create a false sense of security. It can easily be wasted on all the wrong things, rather than used sparingly and wisely which lack of money encourages. When you have money, it can sometimes change your psyche from playing to win, to playing to avoid losing. I’m no rugby fanatic but I don’t think I’ve ever seen Otago win a game of rugby playing defensively.

Ask yourself this question – how does what I need create an opportunity for somebody who has what I want?

Here’re a few of examples for you:

• You might need some office space, a landlord may have some office space they haven’t been able to let with the impact of the recession. Maybe you could strike an agreement for six months rent free while you get up and running in exchange for signing up to a paid lease agreement at the end of it if your business is successful.
• You might need some business cards, and a printer may be looking for ways to get new clients – you might be able to negotiate free cards to get you started on the understanding that if your business is successful you’ll be a loyal customer.
• You might need some software developed or a website built, and someone with the skills may be prepared to invest their time outside their usual work hours to develop it in exchange for a potential future employment opportunity.

Upstart Incubator is currently creating a database of people and businesses who can help a startup business in some way; it could be in exchange for experience, an equity stake in a startup or share in future revenues, philanthropic contribution, or as a lead generation source for future business for their own business. Resources most needed include web and software development expertise, design, business skills and professional services, printing services, telecommunications, and office space.

It’s much better to focus on creating value that people are keen to invest their time, ideas and money in, than it is to focus on money, or lack of. Sam Walton once said “capital isn’t scarce, vision is”.

Myth #2:

I don’t have an idea for a business!

Ideas are a dime a dozen! In fact, almost everyone has had a semi decent idea for a business at some point in time – and few ever do anything with it. If you don’t have an idea yourself – simply find someone else who does have one, and make sure you have something of value to offer in return, whether it’s your skill, knowledge, connections or something else.

You can always research your way to a business idea – look for what frustrates or annoys people, build a deep understanding of it, find out how many people or organisations are willing to pay how much to get rid of that frustration, and come up with or find a solution.

It doesn’t just have to be an idea – it could be an invention. Fewer than 1% of patents are ever commercialised – there are good inventions out there that have never been built or taken to market, that may just need someone like you to get stuck in, research the opportunity and take action. Upstart runs an annual event where we help match entrepreneurs with inventors and scientists, and always keen to hear from both.

By the way, when you are clear on the value you offer and can communicate it effectively, it’s more likely that your challenge will be in learning what opportunities and ideas to say no to, than what you say yes to.

Myth #3:

It can’t be done in Dunedin!

Dunedin is without a doubt one of the best places in the country to start a business. Few cities have the vast array of expertise and knowledge that we have in Dunedin with huge thanks especially to the University, Polytech and hospital for the amazing people they attract to this fine city… and I haven’t even come close to hearing of another city where it’s so easy to access these resources. Our community is tight and generally supportive, and many are willing to volunteer their time, skills and connections to help as long as they perceive you as credible, and having something of value to offer.

Dunedin and Otago alumni are scattered all over the world and keen to support their grass roots – we’re a parochial bunch – avid and blind supporters when it comes to supporting local people we believe will be winners – (not so parochial after a losing streak though it appears).

In terms of cost of living – it’s much easier to live a more frugal but happy existence in Dunedin than pretty much any other city in New Zealand.

Business support, well – it’s all right here! We have:

• Upstart Business Incubator who help budding entrepreneurs learn, grow and find business ideas; incubate startups with potential for sales of greater than $3m within 5 years, and fundraising for startup up companies via the Upstart Angels network along with New Zealand Venture Investment Fund.
• Dunedin City Council’s award winning Economic Development Unit, and the Industry Project Fund.
• Evolver Programme via the Product Design Centre at the Otago Polytechnic who can fund design, R&D and prototyping.
• The Escalator Programme via Deloittes providing innovative SMEs with skills and assistance to access investment opportunities.
• New Zealand Trade and Enterprise to assist New Zealand companies with export growth.
• The Chamber of Commerce… plus much much more!

Myth #4:

I need a business education!

I’m happy to challenge you on this one, while at the same time not challenging you on this one. Going into business knowing nothing about business, and not having access to any business expertise is, well, let’s not mince our words – dumb, stupid, less than ideal!

It sounds a little ridiculous, but the first things you need to figure out are –

• what you need to learn,
• your options for learning it, (books, internet, mentors, institutional learning etc)
• when you should be learning what…, just in time learning is fine but have some kind of strategy in place so your learning is focused and timely
• who should you listen to… best to choose to pay attention to those who have followed their own advice successfully
• and what you shouldn’t learn, and instead engage experts to help you with.

If you try to learn everything about starting and building a business, it’s not good use of your time or skills. Figure out your natural talents, why you want to start a business, your knowledge, skills and maximise them in a way that adds maximum value to your enterprise. So many people have killed their business before it even began by trying to do and learn everything themselves – and run themselves ragged and broke in the process. For the other stuff that you need expertise, guidance and help with – you can tap into an incubator or mentor, and employ people… and if you don’t have the money – then refer to myth #1.

Myth #5:

I don’t have what it takes!

I’ve put this one in to fool you – it isn’t really a myth. If you believe you don’t have what it takes to start a business, you probably don’t. Anthony Robbins says – “whether you believe you can, or can’t, you’re right.” So much about being successful in starting a business is about mindset. You have to be prepared to work on yourself, to challenge yourself, to be open to learning, growing and taking a few calculated risks. You have to believe that you can make it happen.

Give a budding entrepreneur a thumbs up:

Truly entrepreneurial people are a rare breed, who are often ostracised as being weird or different, individualistic or selfish… and it’s time that we as a community recognise the need for people willing to create something great that will create employment and economic growth, and provide exciting opportunities for our children to stay in Dunedin. The difference entrepreneurship makes to our community and economy is massive, and we should encourage the people who we believe to have the potential to give it a go, and follow their heart.

By Lisa McCarthy