The way I see it, the economy does have an effect of how well you will be able to start, but any dedicated person can start a business at any point. I have a friend who's father wanted to start his own business in the field he is in and it was a really bad time for that business. He was told it was a terrible idea and his lack of college degree didn't help the fact and he would fail.
That was eleven years ago I believe and now he is one of the biggest companies in his state.
I would also think that rents and the like would be cheaper in a downturned economy, so that could be helpful too. It's more about the person then the times.
Families continue to commit to each other through franchise ownership
As more and more people leave the corporate grind and start their own businesses,
they are finding partners in the people they trust most: their families.
During financially uncertain times families tend to pull together for the good of the whole.
They create economic security and build retirement income.
In 2011, expect family-centered placements to soar
There are a coujple of ways of looking at the issue of starting a business during bad times.
On the one hand, getting a new enterprise off the ground during bad times will obviously present special challenges.
But on the other hand, bad times will weed out and/or scare off many of the weaker less prepared potential competitors. And less competition should work in favor of the new start-up.
Moral of story: IF you have a viable business model and IF you have adequate start-up finances and IF you have done your
homework and due diligence, then go for it. On the other hand, if any of the above circumsances do not apply, then good times or bad, the start-up is not going to make it.
I agree with Paul.
But the Key point is whether you are ready to launch a company.
#1. Running a company is about overcoming the obstacles (recession only one) that come at you daily - competitive pressures are often greater than recession. You need to be ready for ALL obstacles..
#2. Recessions are good for some businesses and bad for others - many thrive in a recession. So, recession doesn't have to be a bad thing in business - creative business owners find ways to capitalize on it.
#3. Recessions generally weed out the weekest % of affected business - not all. So, your goal should be to not be in the bottom %.
If you are tentative and wondering whehter this or that is too big - might not want to jump in. Otherwise, jump and do your best to rise to the top! Good luck.
The economy is barely growing right now, however owning a business is still a dream shared by a lot of people. Is recession actually a good time to launch a company?
From General Electric to Microsoft, some of the biggest names in business were started during tough times. View the list of the top companies started during a recession.