Why Not Start a Business During a Recession?
What are the odds for success in starting a business during a recession specially when;
1. the unemployment rate is at 9.7 percent or more
2. foreclosure numbers are at an all-time high
3. and, bankruptcies are absolutely epic in proportions?
On Top startup submission sites of that, let's look at the batting average for business start-ups without the conditions mentioned above;
1. Eighty-two percent of small businesses do not get pass five years.
2. One in three shut down in their second year of business.
3. Don't forget that only less than five percent make it the first year.
Not a good statistic at all. No wonder most people never start their own business. Most people think about owning one but never did the first step. Right now, who's crazy enough to start one!
Some experts argue that the absolute best time to start a business is during a recession. Several well-known, highly successful businesses were launched during weakened economies. Burger King got its start during the recession of 1954 and Microsoft got started during a very weak economy in 1975.
Burger king is in the food industry. Recession proof? You bet. People continue to eat irregardless of the economy. There may be belt tightening going on but this business sector continues. Have you heard of value meals lately?
Now, Microsoft is interesting because the internet is just around the corner. Automation for greater productivity is on both in the business sector and at home. Perfect timing, maybe? But they also thrived during the initial phase of the personal computing revolution. Then the internet found its profitability and this company took off like no other. No wonder Bill Gates became one of the richest man on earth.
Starting a business is difficult enough in good economy. It is even harder if not impossible to start one during a recession. However for start-ups willing to defy the odds, there are many advantages to starting a small business during a recession.
Get started and be on your way. Few tips here and how to save money as well.
Start a home-based business. Check network marketing. Investment is less than the cost of a pair of new shoes on most occasions. I don't consider 0 a cost - it's an investment.
Look at opportunities online. Be wise though. Do your homework always.
Keep your 9 to 5. During the day you make a living. Be the best you can be at work or profession. At night you create a lifestyle.
Hire yourself. Do the job if you can. If there's work overload outsourcing works.
Be creative and smart with your money on advertising. Learn how to use the internet effectively. Social networking works. Great examples are at Dell, woot.com and Zappos.com
Buy, lease or rent office space later. See if you can use an empty room some place at home first. Your kitchen is always a good place to start. Or meet others at a local coffee shop. I have seen advertising consultants do business at Starbucks and Kinko's business centers.
Take care of your health. This is one area that's been neglected many times. What good is it if you succeed and not enjoy it when you become sick. Have that exercise routine in place.
We are living in challenging times, those that persevere will eventually make it. Remember that your own resolution to succeed in good times and in bad is more important than any other.
Should you start a business then during a recession? The answer is yours not mine.