Start A Business During A Recession
If you thought that starting a business during the current economic crisis is tantamount to committing a monumental blunder then you need to think again. Though traditional wisdom may suggest you to avoid starting a fresh venture when the market is in a slump, a little study and far sightedness can show you how a recession can be the best time to start a business. So come with us as we explore the subject in depth.
Availability of Business Assets at Low Prices
A major reason which augurs well for starting a business during a recession is the fact that nearly everything is available at rock bottom prices and these include office space, furniture, machinery and other equipment that you may need to start your business. Many people who have closed their business during these times often auction their products and equipment and these auctions give you a great opportunity to buy valuable assets at throw away prices.
Availability of Qualified Manpower
Another key fact that one needs to consider is the availability of qualified manpower at low cost during a recessionary trend in the economy. With jobs cuts being the norm, a lot of talented manpower is available in the market for you to choose. Best part about recruiting during recession involves the fact that you do not need to pay head-hunters astronomic sums of money for hiring good talent. Just a visible advertisement in a local publication can draw a significant response and you can also hire people at lower packages. In addition you can tap local job exchanges and community centres where recently employees traditionally network amongst themselves.
In addition if you are looking for bright graduates from Management colleges then there is no better time than a recession to tap such a qualified talent pool. With placements of most colleges languishing due to absence of large firms at colleges, startups can hope to recruit capable people without expending much effort.
New Business Opportunity Due to Churn in the Economy
Another critical factor that can help startups grow during a recessionary phase is the desire of companies to change suppliers with an eye on cutting costs. So if you can offer highly competitive deals to your prospects, the chance of success of your startup grows by manifold.
Availability of Funds from Non Institutional Lenders
When a recession starts to deepen, people withdraw their investments in stocks and real estate markets. Quite expectedly some of your family and friends too would also be avoiding any further investments in the capital markets and as such they may be open to investing in your business. Thus a recession is also a good time to secure funds from people and non institutional lenders.
Last but not the least, one must always remember a recession is normally followed by a strong growth curve. So if you are able to create the base for your business startup during a recessionary phase, the chances of achieving dramatic growth rates when the economy shapes up is rather high.