FIVE IMPORTANT REASONS TO START A BUSINESS DURING RECESSION

Contrary to popular opinion, starting a business during recession might be one of the best decisions you will ever make. One of the greatest recessions to have hit the world occurred after the World War 2 and it lasted for an average of 10 months. The growth period that followed the recession lasted for over 50 months.

Now the main essence of starting a business at this time does not particularly lye in the recessive period itself but in the growth bloom that follows afterwards. Like the popular saying goes; “make hay while the sun shines”.

Here are five (5) basic reasons to consider if you intend to start a business at this point.

1. CHEAPER LABOUR AND MORE QUALIFIED EMPLOYEES

One of the major down-turn of recession is the rate of unemployment which surmounts to great numbers. So many companies and business are affected by the recession and are therefore forced to lay-off quality employees in order to keep up with the times. This could be harnessed to good purpose if managed properly.

Whatever business category you wish to venture into, to get the right output with a slice of professionalism, you are going to need more experienced and qualified employees. Acquiring qualified and experienced personnel during a booming economy might be a lot expensive than now. During recession, jobs are hard to come-by, rate of unemployment is over the roof, and people are willing to grab any opportunity that comes their way.

Now I’m not suggesting exploitation of any sort, but an experienced employee might be willing to take a severe pay cut to help start-up your business. Now you have quality personnel at an affordable rate as well.

  

 2. NO BETTER TIME TO OBTAIN AN OFFICE SPACE

While the recession causes a significant rise in the prices of virtually everything, the prices of assets and relatively, office spaces are knocked down. There is no better time to make an offer for an office space, as realtors are forced to settle for almost any price placed on a property owing to the slow or no movement in the real estate business. A very lucrative offer on your part might serve as an advantage even long after the recession.

3. THE DESIRE FOR CHANGE CANNOT BE OVEREMPHASISED

For most start-up businesses, hitting a 5-year goal in the first year might be your best bet at succeeding in a long-run. With the right marketing, word spreads out on your business. Lots of individuals, companies, organisations and so on are keen on change. There is always a drive to get more innovation and creativity, a taste of something new and inventive. As long as your products and services are top-notch, customers will not mind the cost. Leveraging on such desires can boost your business growth.

4. GREATER GROWTH TENDENCY AND EXPANSION

One definite advantage of starting a business during recession is the fact that some very strict habits are formed over time. Starting a business at a time when it is seemingly difficult to establish tends to provide you with a better attitude towards your job. You automatically learn to build and strive with little or no funds. This attitude will serve a greater purpose even when the recession is over.

If all the right boxes are ticked, your business can come out on-top during the recession. By providing excellent products and services, over time you garner a huge base of loyal clients. People never forget, especially when you give them quality at a time when quality is a rare commodity. There is a high possibility of them willing to stick around with you once the recession is over. Your customers will start spreading the word for you, incomes will improve, expenditure goes down, and life is good.

5.LESS COMPETITION

During a booming economy, every Tom, Dick and Harry wants to start-up a business. Various businesses, including businesses with similar products and services to offer like yours spring up from every corner, whereas during a down-turn, lots of people are laid back on starting a business for fear of growth and funds.

Already-existing businesses are folding up and falling short. This means bigger market, and less competition for your business. There`s more to go round, and it could facilitate the growth of your business rapidly. When establishing a business during recession, you simply grab your market share.

If you were ever discouraged to start your business during the recession, hopefully this will help you make up your mind; and if you do, when starting a business in Nigeria, you need a name for your business, then head to any CAC (Corporate Affairs Commission) office to register your business and ensure you are certified. Then you need an office space, a business plan, and a website for starters. For more information on how to start up your business, contact us on info@vivacitypr.com.