Contrary to popular opinion, a recession isn't something to fear as a startup CEO. In fact, a recession can be a startup CEO's best friend.
I'll explain what you can do to take advantage of bad economic conditions like a recession in this short video.
Read The Video Transcript Below:
Is starting your company in an economic downturn, a good time to start your company. In other words, it's a recession, should you start your company?
Well, I have a little bit of experience with this one because my last company, even though we didn't know it at the time, we started it at the worst time known to man, which meant we started during the great recession. Or about five months after we started the company, the great recession hit and we just didn't know it.
So the reality is you really can't pick your time, but if you can survive, there's some huge advantages. Now, let me start with the downside of starting your company during a recession. There's going to be less money available and it's going to be harder to come by, and the terms are going to be worse. However, the upside is huge. There are two big upsides to starting your company in a recession.
The first is there's less competition. That means that less people are competing for money and with you. That's a really nice thing to have happen. So if you can take that positive, which is a really big positive, that helps. And if you can survive because it's going to take you longer, it's really, really positive for you.
Now, the other positive, it's going to be easier to recruit talent because guess what? There's nobody else out there, but you for all that great talent out there. Isn't that nice? That's really helpful when you're building a company that you have less competition when you're trying to build your company for that great talent.
Now I'll give you a third one. I've got even more than I thought I had. So here's a third one. It's going to be easier to find office space. Equipment is going to be easier. Your vendors are going to be more willing to work with you. All these things come to your advantage.
And now for the kicker. The big beautiful thing that happens most recessions lasts less than a year. So when you're announcing that first product of yours, of the first service that you have. Guess what? The world's going to be coming out of that recession.
Just when you're announcing your product, there's going to be more money to spend, there'll be less competition, and that's when you can build a big company. A lot of great companies were started in a recession. Maybe yours will be the next one. I'm Brett at brettjfox.com. Have a great, great day.