Recession=Opportunity

We're in an "official" recession. Unemployment, major corporation failures, massive debt, low consumer spending. There's no better time to start up a business. There are a couple of reasons why this crazy statement is true.

No Competition
The big companies are staying away from doing new stuff and rather trying to just insure their own survival. They have no interest in spending millions on R&D (Research and Development) at this time. You'll barely have any competition from them to worry about. The small business owners, or former and aspiring entrepreneurs are feeling discouraged because they think recession=bad for business. What's going on through most entrepreneurs heads right now is that there is no hope of even trying to build a successful company in these tough times. Too bad for them, more room for you.

Low Cost
With real estate prices in a record decline, it's easy to find cheap office space. It's even easier to find the best employees on the cheap. With large companies cutting down their work force and with people starving out there, you'll have good workers lining up at your door willing to work for anything. The recession may be bad for the average Joe, but for you, the entrepreneur, it's quite a deal.

Learn Business (the hard, but effective way)
Running a company in a recession where you have a limited amount of money on hand, and a limited amount of income means you have to be frugal with money. You'll be forced to think about decisions and make smart choices. You're not going to be enjoying your private island while watching the millions coming in. (ex. dot-com bubble) Instead, you'll be sitting in your $20 office chair, thinking about every aspect of your company. "What kind of strategy will be most effective?" "What kind of product do people want these days?" It'll toughen you up as a business person. In time, you will emerge victorious because you learned everything the hard way. The private island guys will lose because they have no idea what they're doing, they had just gotten lucky in the beginning.

Greater Appeal to Investors
Investors and VCs cut back in a recession too. They simply can't afford to fund companies left and right. If you have a very good idea or a solid profit making company, investors will come to you. Right now, they're looking for companies that know what they're doing. The ones that can show strength in a bad economy will win them over. You will know what you are doing because the recession will teach you some great lessons to create a successful business. So it's pretty much a win-win situation with investors.


If you're looking to start a business, go for it. There could be no better time than now, when most people are backing out. Don't wait until the economy is in an upswing again, because everyone will want a piece of the pie by then. It'll be much too crowded for your voice to be heard.