Of course starting a business in down times can be a terrifying prospect. But experts believe down times can be a great time to start a business. We did some online stalking and consolidated the following 10 Reasons to Start a Business in a Recession:
- You Can Get Stuff Cheap: while you don’t want to be a grave robber, look for crazy cheap equipment and supplies, low interest credit terms and even buy assembled business assets from others who couldn’t make a go of it.
- Makes You Lean & Mean: learn frugality early and take it with you into the future. That doesn’t mean being cheap… it just means being, and staying smart.
- Positions You for the Rebound: if you can make it in the trough, you’ll emerge battle-tested and well-positioned for an improving economy.
- Easier to Get Quality People: There’s a lot of talented folks wandering around in down times, so Borg them into your machine now.
- Teams are More Committed: Borging means that if you make it, your staff will be vested in your idea and locked in to grow with you in the future.
- Buyers Are Open to Change: desperate times call for desperate measures. That means both potential consumer and business customers will be softened up and willing to entertain your new offering pitches.
- It’s Easier to Find Partners: manufacturing, marketing, sales, distribution and all sorts of other potential cost-sharing / cost-saving partners will be happy to explore the possibilities.
- Startups are Good PR Stories: optimism is a valued and rare media commodity in recessionary times, so your startup story has a higher chance to get good play.
- Owners Get Tax Incentives: down times are often accompanied by extra political pressure to raise taxes, so gaining tax advantages is all that much more valuable toward getting ahead.
- If You Lost Your Job, You May Have to Become an Entrepreneur: Even when you get re-hired, you’re not likely to get the benefits or long-term ride that was once the norm. The day of the independent consultant (solo entrepreneur) is here so the sooner you realize that you’re an entrepreneur, the sooner you’ll find the happy ending you desire.
For more on this topic, checkout these links:
- entrepreneur.com, Top 10 Reasons to Startup in a Recession, http://bit.ly/JfrkF
- usnews.com, 5 Reasons to Start a Business in a Recession, http://bit.ly/wXIyc
- squamble.com, 7 Reasons to Start a Business in a Recession, http://bit.ly/1I9jOZ
- thestandard.com, Five Reasons Why a Recession is a Good Time to Start a Business, http://bit.ly/q7A2t