5 Top Reasons Why You Should Start a Business During a Recession
Starting a business in a recession is daunting to most entrepreneurs. When the economy is down, so are most small businesses and the job market. It may seem like the worst time to start a business, but it can be a better time than ever. There are several reasons why starting a company during an economic recession can be successful for those willing to take the risk. At AMB Performance Group we want to provide you with a guide on reasons to start a business during a recession.
Reasons to Start a Business During a Recession
Recessions Spawn Opportunities
With unemployment rates rising and small businesses closing, there are opportunities for those willing to take advantage. This is a golden opportunity for entrepreneurs. Additionally, there are opportunities to step up to the plate if you have the motivation and determination to make it happen.
The market is typically flooded with competition, some with huge marketing and advertising budgets that can seem impossible to go up against. In a recession, many businesses mistakenly look to cut marketing budgets as a way to minimize costs, so there is less noise to have to cut through, and advertising space can be cheaper. With less competition comes fewer barriers to entry and more opportunities for those willing to take advantage of it.
Less Out-of-Pocket Cash Needed
With the falling economy comes all types of bargains and sales you won’t want to miss out on. The cost of starting a business can be significantly less than it would usually be if the economy were stable and booming, so don’t pass up the deals when you see them. Additionally, many organizations give startup grants and funding if you have a solid business plan and the capability to execute it.
The chances that you have steady revenue at the beginning are slim, and trimming down your expenses may seem like the best way to go, especially if your savings are running low. But one of the best advantages of a new company during a recession is that you’re already lean. Some larger companies are looking to trim the fat, but if you have people who continuously directly impact revenue and value, then you have an efficient system. Some of the larger, or at least longer-established, companies have budgets that might need to be completely restructured during a recession. As a new company, you will be starting out with a tight budget in mind, and if you outlast the recession, that efficiency will carry you further in a booming economy.
In a recession, many people seem to laugh at the idea of starting a business because they think it will be challenging to open or find one. Many people feel there’s too much uncertainty and not enough time and money to devote to such a venture. In reality, there are always areas of opportunity in a recession for those who choose to look for them. If you are thinking about starting your own business and want an experienced coach who has managed through multiple economic downturns, then contact us today.