Tips for starting a business in an economic downturn
1. Aim to find answers to new problems
Economic difficulties lead to new problems, and new problems give birth to new opportunities. Industry-defining companies take advantage of these opportunities to create a solution that addresses these unique problems. A good example is Airbnb. The company sought to provide short-term living quarters for those who were priced out of hotels during the 2008 recession. In 2009, they received lots of funding and experienced explosive growth.
To take advantage of the crisis, position your business, product, or service to address new challenges in society or the business world effectively. If you had an original idea, try to see how you can adapt it to the current needs.
2. Take advantage of launching during a recession
The unfavorable business climate has made a lot of businesses vulnerable since their established ways of doing business have been disrupted. This has resulted in employees being laid off, businesses selling assets, lower interests, and cheaper credit.
You can however take advantage of this in various ways. The talent pool is currently brimming after millions of layoffs, and so you can easily and cheaply get the right staff. You can also buy cheaper goods and raw materials and take advantage of the lower interest rates to give your business a boost.