You may think that in a time of recession it is a bad idea to start a business and certainly that can be the case depending on your business model. But there are several businesses who have used uncertain times to think of creative solutions and start successful empires. Here are some businesses that started during the time of the 2008 recession; Airbnb (2008), Uber (2009), Kickstarter (2009), Whatsapp (2010) and that is just a few. So why is it beneficial to start a business in uncertain times?
To begin with, in times of uncertainty we tend to be more focused on what we could do differently in our lives. If you have been toying with the idea of starting a business but haven’t had the push to do so you might just get the additional motivation when things feel less secure. You would think it would be the opposite, that we would all have the urge to “batten down the hatches” so to speak but that is often not the case. When we are comfortable with our lives and the stability of things it is much harder to make moves that could disrupt that stability. But when life itself is in a disruptive state then it feels less risky to make a change. So use that to your advantage and take the plunge.
Now don’t misunderstand us, we are not trying to peer pressure anyone to start a business “just because” but if you see a problem that the world needs solved and have a creative solution then go for it! During a recession or time of instability there is often less competition because people are either closing their doors or are too hesitant to act. This sets you up to have a greater chance of success. Less competition means more visibility in the marketplace which can be the perfect cocktail for accelerated growth. It is just important to closely evaluate the solution you are offering to ensure that it will still be marketable when the economy settles.
In addition, to less competition in the marketplace there is typically a greater hiring pool in uncertain times. This can be a double-edged sword because you have more applicants to consider but puts you at an advantage because you can find quality candidates easier. Having amazing talent on your team makes all the difference when it comes to garnering a successful outcome for your new business. So though this might sound like an add-on it really is a huge benefit to you as a business owner.
We hope this has encouraged you to not be complacent. We want to inspire you to embrace the uncomfortable and to shine a light on just a few benefits that can come out of uncertain times. We hope that those who have always wanted to start a business but never had the courage are encouraged by this blog post. Please know that you don’t have to wait for stability to pursue your dreams. Being resourceful or scrappy can be one of the biggest benefits to you in the short and long term. Ultimately, you can’t avoid the negative. Even if you start your business when the economy is booming you are guaranteed to experience instability within the lifetime of your business. So work on that resourcefulness now and you will be well-equipped later.