Top reasons to start a business during a recession

by | Nov 9, 2011 | Business

Were you planning to start a business but had to postpone your plans because of the recession? Do you want one good reason that will motivate you in starting your own business right now? Well, how about 5.

Regardless of what those around you (including the never ending list of self-proclaimed business experts in the media) may tell you, right now is the perfect time to start your business. Still not confident? Just go and take a look at any of the economic slowdowns that have happened in the past. In this post-World War 2 ear, most recessions have lasted for an average of 10 months and then have been followed by a growth cycle that has lasted for an average of 50 months.

What this means to you, is that there is no better time than now to start your business and begin pursuing your dreams.

Following are top 5 reasons for you to launch your business now –despite the current financial downturn:

Everything is cheaper. The fact is that right now is the best time to purchase anything and the right time for getting fantastic deals, across all categories such as equipment and land to commercial office space, labour and personnel. As prices have been drastically reduced, this is the best time to get into the financial or real estate markets.

Hire better qualified and more people. In a time where even the best of global companies are laying off staff, you should be able to find valuable resources at affordable rates. If you are thinking of getting a high-tech start off the ground, there are many engineers who are waiting to be hired. Thinking about starting a professional services firm? Well, there are many attorney and accountants who are looking for the right next opportunity.

Ownership equals tax incentives. Ownership of a business attracts a wide variety of tax benefits that are not available to regular employees. While tax benefits should not be the sole reason for you to start your business, it can be one of the reasons to add to the lost of ‘benefits of a business owner’.

Better credit by suppliers. Because of virtual shutdown of the credit markets, B2B credit flows are circulating money out of sheer need. This means a bullish outlook for companies that is looking for better credit terms on inventories and/or stock.

Sometimes, the best business decisions are the ones in which you are forced into. So, if you have just lost your job or quit and are considering starting your business, now is the right rime. There is no better time to start your business than now, especially when you will be having very few competitors.

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