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Should You Start a Business in a Recession?

By January 12, 2009

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Starting a business in good economic times is trying enough but when you throw in a rising jobless rate, sagging consumer confidence, bankruptcies and a tight credit market; the odds seem insurmountable. Yet there are advantages to starting a small business during recessionary times including:

  • Lower start up costs: The costs of essential business equipment such as computers has significantly dropped in price making stocking and equipping the new office less of a financial burden.
  • Cheap talent: With the U.S. jobless rate hovering over 7% and more layoffs to come, the talent pool is much deeper without unrealistic salary expectations.
  • Reduce ad costs: With rising ad inventories and businesses cutting marketing budgets, the cost and ability to reach your target market is more affordable than ever.

Can your business succeed in a downturn? Yes. With a little planning, dedication and hard work, your odds can be improved. Just remember many entrepreneurial success stories were launched in bad economic times including Microsoft, McDonald's, Disney and Google.

Comments
January 13, 2009 at 4:29 pm
(1) lisa says:

Thanks!

Great advice, that this is the time where you can afford great deals :-)

February 6, 2009 at 11:50 pm
(2) Sharon Wilson says:

Absolutely a great time to start a business if you have a solution, product or service that is recession proof, non extravagant and in sync with the current environment.

February 15, 2009 at 10:20 am
(3) Mergen Chuluun says:

Yes, absolutely!! In fact, recession is the BEST TIME to start a business. Not only are the resources available at lower cost, but also limited budgets force innovation and creativity. Through innovation, better solutions can be created at lower cost. —- How are you keeping your revenues steady? Let us know if we can help. WEBGURU-CO.COM

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