Did you know that during and after the Great Depression and the 2008 meltdown, many businesses not only benefited but were highly successful starting up their new business? If you have been wanting to start up your own business venture, this may be a great time to get and make deals as opposed to during a stronger economy. One might ask themselves. How does this make sense?
During an economic recession, launching a business offers you the following:
People Are Looking for Innovative Answers
Since recessions cause problems, everyone is seeking answers to issues that startups can focus on and solve, for consumers and businesses alike. Remember, the world isn’t going to look the same when this pandemic is over, and you may have answers or products that people are seeking. A lot of businesses want to switch to new partnerships with newer companies who have a more innovative method of providing products and services addressing the changing economy. Most people will say they don’t like change, but change is inevitable in 2020 and beyond.
You Have a Bigger Talent Pool to Pick From
During a recession, you can find talented people for less money as good people are seeking employment while being more amenable to below-market salaries and fewer benefits. They’re also more willing to relocate, job share and consider flexible work hours. You can actually find more qualified employees at affordable rates more easily now than when times are good. We are not saying to pay them less than what they deserve, but there are many professionals willing to take less to work during these times and to grow with a new company.
Just About Everything Is Cheaper
You can find great deals on just about everything during a recession as vendors want to move their stock and are willing to negotiate a deal that will benefit you even after the downturn ends. You can also find what you need at auction at great prices or consider taking over a lease that includes equipment.
Prices are dropping in the following areas:
- Commercial property rates
- Cost of travel
- Office furniture
- PR, marketing and ad rates
As a business owner, you will have tax incentives that aren’t available to employees. When it comes to marketing during a recession, you can build your brand at more affordable rates. For example, you can promote your new business by heading over to smaller news platforms or turn to organic marketing which brings in customers through word of mouth.
When interest rates are low you can get more affordable credit on loans and credit cards and better terms buying stock. When businesses are trying to survive a recession, everyone is working towards keeping cash and stock moving, incentivizing a win-win for everyone. At Corporate Capital, we help our clients build business credit, which puts them in a position where they can get business loans, payroll loans, and cash advances when they need them most!
You Have Less Competition
As funding decreases, you will have less competition for the next couple of years as big corporations scale back and smaller companies struggle to ride out the storm. When you are building your startup, you are more flexible than an established business. You can keep your overhead minimal so you can survive the economic downturn more creatively. It is also important to make sure you have your Corporation or LLC in place when you get started! Whether it is a Nevada LLC, Wyoming LLC, Delaware LLC or a Corporation in your home state, the most important thing is to have it established to limit your liability!
Investors Are Looking for You
Recessions still bring investors looking for business opportunities. Angel investors trying to move their money out of the stock market are more willing to invest in your startup, especially if your business does leading-edge work. Even your family and friends may be looking for ways to invest their money since stocks and real estate investments are down.
Corporate Capital is Ready to Help You
As you can see, entrepreneurs can thrive in an economic downturn as much as during a business-as-usual market. If you have a start-up you want to launch, there’s no better time than now to start pursuing your business dreams. Corporate Capital is a one-stop-shop for creating corporations and LLCs across the USA. We specialize in helping businesses with the following:
- Bookkeeping and accounting services
- Payroll solutions
- Help building business credit and securing business loans
- Personal and corporate tax preparation services
- Navigating the Nevada tax code
- Trust writing and asset protection
If you are looking for high-quality help getting your start-up off the ground, give our business management team in Las Vegas, Nevada a call at 855-371-0070 to learn more! We are proud to be a part of your business venture.