MANY PEOPLE THINK that starting a business during a recession is the most arduous time to do it.  Similarly, many investors think that a recession is the worst time to invest in new and expanding businesses.  After analyzing the situation, however, you will realize that this is actually the prime time to start and invest in new businesses.  Many of the most successful businesses in the world have a history of being established during a recession.  This is because the owners took advantage of some key factors.  You need to be creative and calculative so that you take advantage of certain opportunities.  After all, what matters in a business is your philosophy, not the economy.

There are a number of benefits to starting your business in a downturn.  The startup costs of launching a business during downturn are much lower as compared to any other time.  Research has proved that it is less expensive to start a business during recession as compared to any other time because of the simple fact that the vendors, contractors, etc., are feeling the squeeze from their regular clients who can’t afford to expand and provide them with business.  As such, the beauty of supply and demand causes their costs to lower across the board so that they can simply bring in enough business to pay their bills and keep their business open. 

Aside from assets, when it comes to marketing and advertising for your business during downturn, you will also get much lower rates.  For the same reason, when other, previously established companies are feeling the pain of the recession and can’t afford to advertise because they’re just trying to pay their bills, your new company (who doesn’t have a bunch of pre-existing bills) will get great deals on marketing and advertising because those companies are just trying to stay open as well.

Noticing a pattern in the downturn trickle effect?

Also during this time, your competition will be down.  It is the right time to grab the opportunity and ride high above them.  Their financial muscles may be fatigued but yours are still fresh and new.  

All you need to succeed during a recession is to offer the best customer service and take advantage of the low prices all over town.  If your business has the best customer care, you will be in a position to get best deals as during a recession, many business owners tend to cut back on their customer services.  This means that if you offer better services, you will get more customers.  Not to mention, if your competitors start laying people off, you could be in a good position to hire them, thus acquiring trained labor for your new business.