It’s You, Not The Economy

By 2008-10-19 March 28th, 2018 Whole Enchilada

The biggest factor in a new startup company is you, the founder(s).  It’s not the economy, it’s you.  Microsoft and Apple both started in a recession in the 70’s.  They had the ideas and the founders to make it work.  They had people that told them they were crazy to start some unknown industry in a recession.  Good thing they totally ignored them.

Since most startups go out of business due to a lack of cash, make yourself recession proof by running your company as cheaply as possible while maintaining fantastic customer service.  Thank goodness it is incredible cheap to run a startup now and you can make a lot of items variable costs instead of fixed which helps a great deal.

And in a recession it is less risky starting your own company than working for someone else.  Someone that may suddenly lay you off.  With your own company you are in control.

During a recession you’ll have less competition.  While your competitors who are spending a lot on overhead are going out of business, you’ll be strumming along lean and mean.  You can also consider producing a product or service that will save money for your clients, something that clients will look for during a recession.

If you are an investor then a recession is a fantastic time to invest.  You buy when things are low and watch them grow.  A recession is an investors dream.

Some people go to grad school during bad times and come out with a degree and good times again.  Adapt to the situation and do what is best for you.  I doubt it is staying the status quo.

The threats to your company are not in the news.  The threats are in the mirror, you.  It always comes down to the people.  Period.