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Why Start a Business During Economic Downturn
You may be surprised to know that a very good time to start a business is during a recession or even a depression. Many of the companies that are on the S & P 500 started during times like we are currently experiencing.
Here are a few of the startup companies that began their business trek during steep declines in the U.S. economy: GE – the panic of 1873; Walt Disney began his venture during the recession of 1923-24; HP was formed during the Great Depression; and, Microsoft was born during the recession of 1975.
Below I’ve listed seven reasons that these times are good for a startup business and you can probably add more. But first, consider what holds many back from trying something new.
Fear and Uncertainty Often Get in the Way of us Forging Ahead
Horatio Alger claimed in the 1800’s that anyone willing to work hard could succeed. Today, the picture is no different. However, you may work very, hard and not get ahead. If you live from paycheck to paycheck and worry constantly about how you will meet your financial obligations, you’re living in a world of stress.
Perhaps you dwell on the possibilities of another terrorist attack. Maybe you’re fearful of an unstable job market where mass layoffs and outsourcing threaten your livelihood. The future is replete with uncertainty about any number of financial matters. But let’s never forget that line by FDR: “The only thing we have to fear is fear itself.”
These sorts of fears, are actually the very reasons to consider starting an internet based business. In my own case it became evident that doing things the same way was not an option. I believe today’s current events are most timely for the home business opportunity seeker! I started about two years ago because I knew I didn’t want to be run over by the economically devastating freight train that started in October 2007.
Online businesses have spiked up exponentially over the past few years and will continue throughout the current downtrend and beyond – it’s the new way of doing business. So if you see yourself as an online home business opportunity seeker you are online at a very opportunistic time.
A Mild Recession in 1982 – Expanding the Market Base
During the 80-’83 recession when interest rates skyrocketed to over 20% my drapery company had just opened a new market about 140 miles south of our primary location. We did this in line with reason number one listed below – to expand our market while the local market pulled back.
In the offline world we do this regularly – expanding the reach of our existing business in order to open a new market or territory. It was simply the very best time to start a new operation with new fresh ideas and a young fellow that was determined to make it all work. (The young man that opened and maintained that location has now retired from the business that earned him millions over the years.)
Seven Reasons to Start an Online Business Now
1-The number one reason is that you need to expand your base of potential customers during a recessionary time in order to draw from a larger pool and the very best way to do so today is by establishing yourself as part of the global market.
2-Learn from history which records the greatest companies started or expanded during times like these.
3-As a new business owner, whether experienced or not, you are more cautious about spending, hiring, and purchasing so you make better long-term decisions.
4-By starting now you will be positioned and well prepared for the next growth spurt.
5-You can start for so little money it almost makes it a no brainer.
You probably already have the only equipment you’ll need—a computer and a telephone. That’s basically all that’s required! Now, of course, you need the information that has transformed so many people’s lives regarding how and what to do. But this is a learning curve like with any business at any time.
There are more online business ideas available than we can count but with a focused approach, determination, a teachable spirit, and commitment you will be well on your way.
6-You may still have an income right now from your current job
To add to the stress of many, are stories of layoffs by major corporations that are announced every month. As early as 2006, 1,500,000 workers were pink-slipped in mass layoffs (“mass” meaning more than 50 employees at a time) and it has become much worse now in 2009. Companies are reorganizing, outsourcing or selling out to other companies. Many other once thriving companies have already filed for bankruptcy. So, if you are still working then now is the absolute ideal time to learn, invest and grow with an existing income while building your new online internet based business.
7-You may still have some retirement funds left
What better way to invest your money than to invest in yourself especially during a time when the overall markets will do little for the growth of your money. In a recent article I quoted a statistic from BiancoFinancial.com stating that had you placed your money in t-bills the first time the Dow moved above 10,000 back in1999, you would have more than the person who has remained in stocks and mutual funds. It isn’t going to be getting any better for another few years as we have really only just begun the down turn of an economy that has been sustained only by fumes for a number of years.
Add to this short list, the personal reasons that you’ve always wanted to start a business and then consider your options. I think you will find as I did over two years ago that an internet based business is one of the very best options available for starting a new phase of life.
