5 Reasons to Start a Business During a Recession
There is no better time than the present. Oops, I just made 6 reasons. Anyway, here are five more reasons that you might not want to hold off to start your new business until after the recession is over. You don’t even know when it will be over. Oops, that’s 7 reasons. It might be over in 4 months.
Consider that if you don’t start now – then in a year when the recession is over, if it takes that long – or 2 or 3 years then you’ll be not only right where you were 3 years ago, but you’ll be much worse off than you could have been because if you started your new business during the recession of today you could actually be profitable by the time the USA climbs out of the recession!
I was inspired by an article by by Heleighy Bostiwick but I changed the description of the key points to reflect my own thoughts on the issue.
1. You have a Smoking Hot New Business Idea
There are good ideas and there are those that can’t wait. If your idea for a new business is so hot that you might be able to prosper even DURING a recession you should waste no time at all filling out the forms to incorporate your new business in whatever state your business is in. Especially relevant business ideas during times of recession are those businesses that focus on solving problems DURING the recession. Follow me? If you have an idea for a business that can analyze other businesses and save key costs on items or processes that results in saving the business owner heaps of money during a recession – that is a smoking hot idea. If you can guide people toward training they can use in their off-hours during the recession and that will help them advance further once the recession blows by, then that too might be a smoking hot business idea. Maybe your idea is to pool investors who buy businesses that are going into the red during the recession? Smoking hot?
2. Your Credit Rating is TOPS
During a recession banks are typically less thrilled about lending money out. However, if your credit rating is very high you’ll have your pick of interest rates and other loan features to finance moving your new business forward if it makes sense to do so during the recession. Just another reason to always keep your credit rating flawless.
3. You’re a Good Talker and Can Create the Win-Win
Negotiating a win-win with a bank or another business during a recession is a bit more easily done because there is real fear in most people’s minds as they wonder how long the recession will last and how long they’ll need to pinch pennies. Some businesses wonder if they’re going to make it through a recession. It’s times like this that business deals can be made by someone that walks and talks in a way that is persuasive, logical, and leads to a win-win for both sides. Savvy talkers can negotiate amazing deals during a recession and should be inspired by it – not slow down.
4. You Manage Your Money Well, Recession or Not
Chances are that if you were managing your money the right way -and were a savvy business person in the first place you wouldn’t be crying your way through this recession. It would be a period of slower growth, but you wouldn’t be in danger of losing your business or other assets. If you’re not good with managing your money, the recession is a good time to get good at it! You’ll see what you really need and what you think you need to survive personally and in your business. Businesses can start and thrive during a recession. The economy doesn’t stop – just slows. If you are budget minded you might just be able to make your new business work during the recession. Then, who knows – soon it may be thriving!
5. Other New Businesses Aren’t Starting
If you’re the one starting a business when the rest of the industry you’re in thinks it’s time to hold off doing anything that leads to growth you might capitalize on a lot of situational opportunities that present themselves as you network and tell others you’re growing your new business. You’ll attract attention and be seen as a leader – not a follower. People love leaders in their niche. This is one time when you might, as a new business creator, be seen as a leader in your niche. You can use this time to capitalize on deep discounts of services and products your business needs to grow too. If you’re the only one growing, you’re the only one buying goods and services. Vendors will do backflips to be able to sell you something. Leverage your power during the recession by getting long-term agreement on rates that extend well after when you think the recession will have past.
There are businesses that take advantage of recessions as a time to grow and increase business and razor-sharpen focus. There are companies that realize the recession is temporary and choose to use that time to go all out on education of employees to prepare them much better than they were before. Some company managers see recession as a wake up call to action that signifies it’s time to prepare everyone in the company to get in the game. In particular I know one company offering online incorporation in FL. that is using this time to overhaul their existing web sites and build new incorporation sites. Why now? The time is right for deep discounts on web development, SEO services, and agreements with key players in the industry.
Use the recession to move forward, not backward. Use it as a period of adjustment that you vow to continue even after the recession is gone. Your company will grow strong if you can stick to that simple idea.