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Why the Recession is a Good Time do Start a Business

Updated on August 26, 2009

Starting is a business is a difficult decision for many. It takes time, planning, and lots of energy to make a  business that will generate profit.

For this reason, many people believe that the recession is a poor time to start a business. The reasoning is that if everybody is having problem finding and keeping their jobs, then everyone else should have a hard time economically.

Although there are sectors of the economy that are really severely affected by a recession, the reality is that there are many opportunity lefts for true entrepreneurs that want to create a business. Even in the middle of a recession, it is possible to create great business that will make lots of money.

I will share with you some reasons why the recession may be in fact a good time to start a business.

Reasons Why A Recession May Create Business Oportunity

When thinking about recession, most people think of an era where there is no economic activity, and where everyone is in a bad economic shape. Nothing could be further from the truth.

If a recession really meant that business stopped, then it would be the end for everyone. Nobody would work, and due to the complex nature of our society, many people would die due to lack of food, energy, and other basic services.

So, you see that life and business don't stop during the recession. The next realization that you need to have is that although the recession is bad for some, it can't be bad for everyone.

The reason is that t he economy fluctuates. There is no law saying that somebody cannot make more money because of a recession. Just due to  the fluctuations of the market, will can see that some will make more, and some less.

Which leads to the realization that the ones that will make less are exactly the ones that are making a lot right now. It certainly won't be you, because you are not in business yet.

Thus, if you start in business and make effort, you are the one that has less to lose, and everything to gain. You company will not be suffering to recession, because you are starting from now, not from a past moment in time.

Another reason why you can profit in a recession, is that companies and people are trying to cut costs. If you come up with a product that can save some money, they will immediately respond. For example, if you provide a service that your competitors can only provide for the double of the price, then you are in a great situation. Finding cost cutting products is a great way to profit in a recession.

Still another reason why it might be good to start during a recession, is that your competitors will be under heavy stress. They will be more worried with cutting costs than in improving their business. This is when you can use the opportunity to provide a competing product and/or service. The established companies will be so worried in maintain what they have that you will be able to build a much better product.


As you see, a recession may provide many opportunities for entrepreneurs. You just need to think about the possibilities, and make sure sure you don't overstate the risks. 

If you want to make money on the Internet, this may become a big business decision for you. You can get many tips about how to start a web business by subscribing to this new letter. You will certainly get lots of ideas of how to make money on the web.


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