In last week’s interview on the Orange Files Small Business Podcast, Dr. Leslie Roberts talked about starting a small business during a recession. Contrary to what you may think, starting a business in a recession can actually improve your chances of small business success!
Advantages of starting a small business during a recession
As Dr. Roberts mentioned in her interview, entrepreneurs who start their small business during a recession have several advantages over those who start a business during “boom” periods. If you’re thinking of starting a small business in today’s economic climate, here are some advantages you might have:
- A better understanding of what your business can handle during more challenging times.
- Increased fiscal responsibility.
- Knowing very quickly whether your product or service is viable in your market.
- Often cheaper prices on things such as office space and supplies.
- Your product or service potentially fulfilling a need that your customers still have, even if your competitors are backing away.
- Learning how to be flexible out of necessity.
Successful businesses started during a recession
To bolster your confidence, here are six well-known businesses that were started during, or just after, recession periods:
- Wikipedia Foundation
- Microsoft Corp.
- FedEx Corp.
- Hyatt Corp.
Today’s economy might not be the strongest, but starting your small business in a recession climate can actually improve your chances of business success. As always, good small business training is essential for a strong foundation, no matter the economic climate – so get your education and get started!