Starting a business is a giant leap. There are many things that an entrepreneur must consider giving it a go. One of them is the perfect timing. Is it a good time to start a business when the world or your community is in an economic recession? The answer is a BIG YES. That might be surprising, but here are some reasons why.
Bringing Something New in the Market
An economic downturn is a time for brilliant minds to emerge. An entrepreneur who knows how to use thorough risk analytics can give the market something new.
During hard times, people want to see innovation. They want to see novel products and services that will bring them solutions. Thus, customers are more eager to try new things. Consumption does not stop even during a recession. People are only more careful about where they put their money. If what you have to offer is worth it, then it can be a win-win situation for you and your potential clients.
Engaging Employees More
Building solidarity within a company takes time. But, there are instances that a sense of unity is easier created. Employees of startup companies during a recession came from their lowest points. They would come either from retrenchments or from companies that close down.
Thus, they will be more eager to prove themselves and put value to this job that they got even at an unfavorable time. You can expect greater effort and also greater loyalty coming from these people. But, you are not on the losing end. Employees that you will hire are most likely talented people. They were only forced out of their previous jobs.
Getting Good Bargains
Starting a business means having partnerships with other trades. You need to have suppliers for your raw materials and other pieces of equipment. If the economy is in an upturn, this will cost a startup company a great deal of money.
Doing this during a recession will give you a breathing space to bargain. Businesses want to stay afloat and would love to discuss lower terms with you. They may even consider a barter of services or products instead of an exchange of money.
When things are favorable, one may take things for granted. They can be more lenient with wrong decisions. But, when an entrepreneur starts at a very low point, every little thing matters. They will be more conscious of how they conduct their business. There is also a stronger drive to succeed amidst the limited resources that they have.
When a startup succeeds during a recession, running it when things start to pick up will be a breeze. As an entrepreneur that started their business during the downtime, you gain bigger skills. Then, you can apply them well at more favorable times.
Narrowing Down Competition
Having competition is something that any entrepreneur has to deal with. It is a natural thing in the business world. When you are only starting, this may feel very daunting to you. An advantage of business during a recession is the lesser number of competitors. Old businesses may be closing down. Those that want to start are having doubts. Thus, be the fearless one and create something. Then, enjoy the advantage of having lesser players in the field.
These reasons are not foolproof ones that you will succeed during a recession. But, they are worthy of consideration. Taking a step may bring you great success.