5 Reasons Why Starting a Business During a Recession Is Actually a Good Idea
1. Gaps in the market
In a recession, society is stripped back to it’s bare essentials and we begin to see gaps where some new essentials needed are missing. For example, during the Covid 19 lockdown, there was a very high demand for virtual services such as meetings, viewings, and also for PPE, such as masks and safety screens. More and more gaps will surface, making it easier for businesses to choose a market that will give you a promising head start.
2. More Flexibility
Starting your business at a time where you have to limit your outgoings and financial overheads can make your business far more flexible than your competitors as you are already able to effectively run your business during financial insecure times. Also, more flexible businesses are often able to offer a service or product that can save other companies money giving you a good chance of attracting more business.
3. Easy Search for Employees
Unfortunately, recessions often dramatically impact joe security, but for business starting out during this time, this isn’t a bad thing as there will be abundance of talent available to you, so you can have more freedom in shaping your team. So, if you know you have to make some key strategic hires in order to realise your business ambitions, now is a great time to do so.
4. Increased Innovation
Amidst uncertainty and difficult times, businesses are forced think in creative and unique ways to get their business on the map and set themselves apart from longstanding businesses which are potentially stuck in their ways.
5. Business Resillience
Finally, getting your company started during a recession is a sure-fire way to building a more resilient, lean and efficient business. Habits learned during a recession often stay in place through more prosperous times, helping to create a robust business much more capable of navigating future bumps in the road.