10 Good Reasons to Start a New Business in a Recession
According to USA Today, 16 out of the 30 companies that make up the Dow industrial average were started in a recession. These include Procter and Gamble, Disney, Alcoa, McDonalds, General Electric, and Johnson and Johnson. Microsoft was also started during a recession as were Intuit, Whole Foods, J. Crew, Costco, Applebees, and other successful companies, according to the article. Here are 10 good reasons to start a new business in a recession:
- Retail space is cheaper now.
- It’s easier to find better qualified employees due to high unemployment, and thankful new employees tend to be more loyal and hard working.
- You can find good deals on office furniture and equipment these days. You can get much of what you need at auctions.
- Once loyal customers are now shopping around to save money. Show them value and you could win their business.
- Starting a business now forces an entrepreneur to develop good habits in managing cash flow, budgets, and balance sheets.
- By getting started now, you will be better positioned to raise capital later on when the economy comes out of recession. Venture capitalist firms won’t sit on their cash forever.
- Business owners can take advantage of a variety of tax benefits not available to employees.
- You could get a great deal on an existing business these days and turn it around.
- Do it because you can’t find a good job elsewhere. Sometimes this can be just the motivation one needs to get started.
- With every crisis there is change, and with change comes new opportunities.
