5 Reasons to Start a Business in a Recession
Start a business can be stressful, to say the least. This is because there is a lot of things to put into consideration and consider. However, one of the things people usually consider which they shouldn’t is the economy of their country.
Because of this, we will be discussing the reasons why the economy of your country should not deter you from following your passion. Without further ado, here are 5 reasons you should start a business in a recession:
Cheaper Advertising and Marketing
One of the biggest factors that help guarantee a successful business is marketing and advertising. This is because Marketing and Advertising help inform people there is a business that can offer them the service and products they need.
Recession causes less demand for Advertising and Marketing as established brands and businesses are looking to cut back on the money they spend so they can make a good amount of profit even during a recession.
As a result of this, advertising your newly established business venture to people will be far cheaper than normal.
Supply is not expensive
During a recession, many companies are forced to offer discounts as incentives so that customers will want to buy in bulk or come back to place more orders.
Starting a business requires stocking up the products you intend to sell. You might even have to buy furniture for your office space. Recession lets you do this at a cheap price.
Forced Unemployment or redundancy
While this might sound a bit extreme, it can and should be expected. Recession forces companies to make difficult decisions. This is usually because they can no longer afford to pay all their workers. This might force them to let go of some of their employees.
When this happens, you have no other choice than to try your business ideas. However, many companies offer redundancy packages which you are entitled to if you decide to leave your company because of the recession.
So not only will you start your business idea without having to worry about your work, you will do it with additional money.
Competitors are taking a hit
If there is one constant in an economy that experiences a recession, it is that every company, brand, and business is affected. This is because the customers who always contact the companies and businesses for their products and services will immediately start looking for cheaper alternatives.
The result of this is a reduced profit for the companies. When this happens, companies and businesses start looking for a way to balance out their book without taking too much loss.
Some of the steps include letting go of some workers, putting marketing and advertising campaigns on hold, and some big companies even shut down outrightly because their board can no longer fund the companies’ production.
Customers are looking for cheaper alternatives to big-brand products
Let’s be realistic – You are generating the same income you are generating when the income is buoyant but now there is a recession and products and services cost more than they usually do.
The next logical thing to do is to look for products and services that are similar to the products they can no longer afford. This is exactly the scenario you should consider. The truth is, during a recession, everyone looks for a way to save a penny whenever they can while still getting the product they need.
With that in mind, you only need to produce fantastic products similar to that of the big brands but at reduced prices and you will see your products and business garnering attention.
While all the aforementioned reasons are good enough reasons, there is one more reason that plays a huge role when you want to start your business. Let’s face it,
Motivation is the biggest reason of all, and being excited to launch your business coupled with effort and determination should be enough to help you launch a successful business. There is no good or bad time to start a business!