This weekend the entire American economy suffered another 9/11 which has been the worst financial crisis since the Great Depression. The collapses of the Merill Lynch&C o, Lehman Brothers Inc. and one of the biggest insurance company American International Group (AIG) transformed 15th September as the Black Monday. Of course these headlines slowdown the start-ups of many enterprises but still it shouldn’t be a barrier. Let’s remember that both Bill Gates and many other entrepreneurs didn’t wait for the recession to pass before launching their products on the marker. Same thing did BMW when it increased its popularity during the 30’s crises.
The question is shall we start a small business during a bad economy? The answer I think that if the opportunity is right then anytime is the perfect. Nevertheless while starting a business always comes with risk and these periods of crisis can make a launch even harder but still it also depends on your kind of business. Sometimes it is even possible to find some reduction in costs like rents and people’s wages can be much lower.
Being a small company you feel safer due to the big companies that retire from the world markets and making the competition narrower. However the CPI decreases because people begin to worry about their finances and they will take fewer vacations, will cut back on restaurant meals, entertainment and other luxuries.
Nevertheless the most essential key to a successful business in any economy is to be carefully organized and while big companies don’t take any risks in the recession period, whereas the small start-ups are out reinventing.
sources:
http://finance.yahoo.com/banking-budgeting/article/105785/Worst-Crisis-Since-1930s-With-No-End-Yet-in-Sight
http://www.wisegeek.com/what-is-the-best-way-to-start-a-business-during-an-economic-recession.htm
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment