Wednesday, September 8, 2010

Why a Recession is the Best Time to Start a Business

Starting a business in the midst of a recession is one of the smartest business moves you can make.  Some of the greatest businesses of all time were born during bad times: Facebook, LinkedIn, Monopoly, Apple, Cliff Bar, Scrabble, KFC, Dominoes, FedEx, and Microsoft are just a few.

So why is now the best time to become an entrepreneur?  First, the cost to open a business is at an all time low.  A recession is the best time to buy rent estate, purchase equipment, hire designers, buy products, and seize coveted advertising space, because everyone is willing to accept discounted prices.  Second, the competition is low.  A recession creates a lower barrier of entry into the marketplace.  As the only light in the dark, you have no choice but to shine brilliantly.  Third, a recession gives you confidence.  If your business can survive through the tough times, it can survive through anything. Likewise, if your business folds under the pressure, it probably wasn't meant to be -in the first place - And it's cheaper to fail fast if you are doomed to fail. 

I know dozens of people personally who have lost their jobs due to this recession -- In fact, I was one of them.  But after opening my own business, I now have a steady income and the ability to create jobs for others. So although it may seem like starting a business now may is risky, sometimes I wonder if working for someone else may be even be riskier. 

Aarin Elizabeth is the founder of iVi Scents | Nontoxic Bath and Body
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