5 reasons to start a business during a recession!
Starting a business can be very challenging. A lot of planning and research is required to find a niche market and creating the business model. Covid doesn't help the situation either, creating even more problems and barriers to success. But, in the end, the level of risk you can endure to make your business idea into a reality is what differentiates an entrepreneur from the rest of the crowd. The entrepreneurship journey is a long path through obstacles, creating, and finding different opportunities. But the success generated from your company can change your life forever.
Business success stories born from past recessions!
Starting a business in a recession will never be an easy task. However, you might look back on it one day and see that it was the best leap of faith you ever made. No one will make the leap for you besides you.
Here are some examples of household name corporations who took their first steps during a crisis or recession:
- Microsoft: During the recession of 1973, Bill Gates, started a small tech company specializing in developing computer languages.
- FedEx: Founded in 1971 as Federal Express, FedEx didn't start operations until the recession in 1973.
- Hyatt: Jay Pritzker bought the then Hyatt House motel in 1957 in the middle of a recession and turned it into one of the largest five-star hotel chain.
To help give you some inspiration and reassurance, here are five good reasons why the recession is still a great time to start a business.
The most important thing, of course, is that you don't want to put all your entire life savings in to start your business during a recession. Based on where you operate, you can always look for state-based and other funding programs to help you start. You can always apply for funding at a bank, but we know how that goes... Read more about the disadvantages of getting a loan from a bank here. By taking the independent route, you will be able to participate in different programs and continuously receive support from the various organizations that support start-ups such as www.Click-N-Loans.com.
2. Less competition
With the economy down, many business owners will shut down their businesses forever. On top of existing businesses closing their doors forever, with fewer funding opportunities, the economic recession will discourage many businesses from starting up. Interestingly, franchised companies have a strong enough pull to still be on good terms with lenders and are considered to be less risky! You would still be in a great position to get funding if you were to consider starting any type of franchise. But the less businesses in the area, the better for competition.
3. Better rates
When the economy is weak prices of excess goods and material tend to go down, and as a result, many businesses will try to remain competitive by offering better wholesale deals. You will be able to get a lot of necessary items for lower prices, ex. from office rental space to business supplies, vendors will be looking to move their product quicker due to uncertainty. For the same reason, you will have all the power to negotiate better deals that will benefit your business.
4. Professionals needing work
While door are closing everywhere, there is a huge opportunity to get the proper employee you may not have had access to before. A lot of people looking for work, and they could just be your missing puzzle piece. With business layoffs being more present during a recession, there's a greater amount of qualified individuals looking to work. It will also be an excellent benefit when you expand your team and grow your business later on.
Sometimes, when you get too comfortable it can mean you lack the necessary motivation to take your business to the next level. With a recession present it adds a sense of urgency to "sink or swim". With fewer options, you have all the more reasons to push harder, and you are more likely to make sure that your business is a success story. Take some time to create a thorough business plan that will cover you in the future do to any recessions or crisis that may happen. The present recession is a good reminder to create a more sustainable business for your future.
Determination: the ultimate secret to launching a new business
Not every business that started during an economic downturn have shared their success story. However, what they all have in common is the ultimate belief in an idea that made it possible to overcome challenges and succeed. Armed with the appropriate planning and proper resources, your business can grow and thrive even during an economic crisis. Click N Loans has the resources needed to propel your business into a new atmosphere, click here to apply for the proper resources your new or existing business may need.