We understand that starting a business is very difficult, let alone the challenging times ahead of us with no securities how the future will evolve. And yes, we agree that this can create even more problems and barriers to success.
Why Recession is a great time to start a business?
But, in the end, this is what being an entrepreneur means: Learning through obstacles, creating and finding different opportunities that bring you the desired results.
We will explore why Recession is a great time and some of the giant companies that started during recession times.
Don’t give power to the fear of the “economy down.”
Different reasons should encourage you to start a business during a recession. Big companies like General Motors, Microsoft, FedEx, Burger King, or even HP started during different US recession times.
So, for most businesses in the market, it usually takes time for their services or brand to get recognized, sought after, or trusted. Although it depends, the truth is that the average customers have to see your company or product several times before they buy from you.
This makes the Recession a great time to start and get your name out, while many other companies will be cutting back, and there will be less competition for people’s attention.
We will list below eight reasons why Recession is a good idea to start a company.
As prices of assets get down, there is an excellent value in world markets. Best time for a great deal in almost every category, primarily financial or real estate markets, all the way to construction.
Many people wait for years to find some value in these markets, and Recession is the best time for them.
2.Hiring better-qualified people
In a time when even big companies are laying off, you will be able to find excellent services at very affordable prices—planning to get your startup off the ground? Plenty of engineers ready to get hired from you.
Were you thinking about starting a law firm? You will find many attorneys looking to find new opportunities. The talent pool is massive and an excellent opportunity for you to find cheap and best-qualified professionals.
3.Getting great PR
We mentioned above that customers would trust a brand they see several times before purchasing it.
During a recession, you can generate great PR by representing your alternative ways in your market. Going against the trend triggers consumers, and the media will love to tell them about you.
4.People will be looking to get a different supplier
Cost-wise, everything will be open for all the companies. You might have the higher prices, but if you are offering a better value, this will be your chance of getting new business when you start a business.
You will also be in an advantageous position of being the “new kid” when it comes to selling your services and products. Many companies need to get new partnerships, even with new companies, when they offer better, different, or innovative ways of delivering their services and products.
5.You can get everything you need at auction
In addition to what we call “lower prices,” when you are a startup company, you will be able to find some of the best deals at auctions. This especially when it comes to office furniture or large equipment.
They are also a great place to get “like-new” bar and restaurant supplies at affordable prices. These days you can find great deals on anything; name it!
6.Cheaper credits with decreased interest rates
You will find things costing less money, but the banks of countries affected drop their interest rates while convincing them to spend more.
Reasons like these enable startup businesses to think about loans or credit cards in the early days if you compare it to high-interest rates used to control inflation when we have a more robust market.
7.Recession also means fewer competitors
When the world economy is going through a downturn, fewer people will start a business. The main reason for this is that there will be less funding. This makes it far more favorable for those who love taking risks, control the ownership in their companies, and don’t need to split the pie with anyone.
Suppose your startup depends on suppliers’ products. In that case, a Recession is a great time to renegotiate and negotiate deals that will be an excellent benefit for you even after the Recession ends.
8.Investors will want to invest in your business
If you need funding because there are equipment and plant costs that you can’t avoid – there will be many smart investors looking for new business opportunities.
When the economy is in bad shape, angel investors will be looking to get their money out of the stock market, and they might be willing to move that money to fund you if your idea is promising.
Best advice to follow if you are planning to start a business!
Many successful companies that started during economic downturn periods do not share their success stories. It is said that this is a good combination of good ideas, a bit of luck and long hours of work.
Most of them had someone in charge who believed in the product – individuals ready to give their lives to get this thing done. This wraps up a great team of professionals who know what they are doing and are prepared to go that next mile.
In tough times like Recession, it requires being innovative and finding out how can you do more with less (money or resources). You can use platforms like Newco to further create your company faster.
Newco will assist you with teams, the right tools, and the capital to bring your ideas to life. From developers, brand strategists, designers, growth marketers, and more, they will use their experience of over two decades to give life and enhancement to your business idea.
There are different reasons to start a business during a recession and other business models that you can use (considered successful during Recession). If you have the motivation to bring it to life, this is a great time to start working for yourself.