Eric Ries, the author of the book "The Lean Start-up" selling more than 1 million copies worldwide, said that the economic downturn is the best time to become an entrepreneur. The pandemic is affecting every aspect of our lives, including the way we work.
For many, it brings a period of instability and the possibility of job loss. For entrepreneurs, however, it creates a new window of opportunity, according to Eric Ries, author of the book "The Lean Startup". Talking to CNBC, Eric Ries said that the economic downturn was essentially the perfect time to open a new company: "The best time to become an entrepreneur is when everyone runs away."
According to Ries, some of the greatest companies you have ever heard of were born in crisis. General Motors, IBM, Disney, Toyota, and HP are among the big names born during or after the recession such as the Great Depression and World War II.
In a recent interview with the LinkedIn recruiting network, Airbnb founder and CEO Brian Chesky also said that they had been born in crisis, referring to the global financial crisis in 2008. This is partly due to the fact that the inputs - the costs needed to produce products and services - go down during the downturn, becoming an "advantage of the business." These inputs include labor, land, food, and lending costs. The reduction in these inputs is because countries have reduced interest rates and launched corporate bailouts. Also because of the crisis, people often yearn for change.
The pandemic is more special than ever because many of the key leaders have not been able to adapt and lose serious credibility. “How many organizations in the world show sclerosis and inefficiency? How many companies hide and bury their heads in the ground instead of helping their employees or their community,” Ries asked.
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Losing credibility is a "terrible thing for society" but a "great opportunity" for entrepreneurs. Ries referred to the gap that needs a new generation of leaders to fill. The author argued that the desire for new leadership, new ideas, and new models would appear and become bigger every day.
The book "The Lean Start-up" " outlines the best approach when starting a business. It focuses on three important steps, including starting with customers, interviewing, and receiving feedback to get a clearer picture of what customers want; developing usable products to a minimum to quickly realize the idea; building – measuring - receiving continuous feedback to perfection.
According to Ries, there are now many entrepreneurs emerging in the epidemic, such as those who supply medical supplies via 3D printing. There is still plenty of space for people to catch up and try something.
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