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.