Are you looking for reasons to start a business in a recession? Should you start a new business during challenging times?
Starting a new business in tougher economic times might seem counterintuitive on the surface. Yet, there are actually many reasons for trying it. In fact, it could be the best possible time to start a company.
Here are just some of the benefits you’ll find to taking the leap of faith now…
Recessions Are When The Best Businesses Are Built
It’s true that anyone can seem like a genius at starting and growing businesses in blindly optimistic bull runs. There are periods when it seems like it is almost impossible to lose.
An upturn may make it seem easier to raise money, and benefit from all of the dollars floating around. Yet, most of those short term easy successes can be revealed to be total duds when the economy changes.
Keep in mind that in fundraising storytelling is everything. In this regard for a winning pitch deck to help you here, take a look at the template created by Silicon Valley legend, Peter Thiel (see it here) that I recently covered. Thiel was the first angel investor in Facebook with a $500K check that turned into more than $1 billion in cash.
Remember to unlock the pitch deck template that is being used by founders around the world to raise millions below.
In contrast, many of our biggest businesses and startup success stories have been born out of recessions, depressions, dips, and crises. This is also when most personal wealth is made and a critical factor as part of the reasons to start a business in a recession
Check out the patterns and throw your hat in the ring to become one of the next generations of hyper-successful companies forged in recessionary times.
During economic upswings, everyone wants in which is something to keep in mind while you are looking into the reasons to start a business in a recession. Big corporations are in growth mode and are expanding into new areas. Countless small businesses and entrepreneurs are jumping in to take advantage of the next hot thing.
During recessions, there is a lot less competition. Fewer others have the courage to move into new verticals or to start businesses. This is really important. It means that you can focus your time and budget on your own business, customers, and product, instead of worrying about fending off the competition.
This can give you a tremendous lead, and allow you to grow, dominate market share, and establish your brand and be in a position of strength before others try to copy you.
Lower Startup Costs
Almost everything gets cheaper during a recession. Especially many of the things that startups need to get off the ground. With fewer people starting, other companies want to attract new business. So you’ll find sales and free trials. Many other companies may be going out of business and liquidating their inventory.
See How I Can Help You With Your Fundraising Efforts
- Fundraising Process : get guidance from A to Z.
- Materials : our team creates epic pitch decks and financial models
- Investor Access : connect with the right investors for your business and close them