Why now is the right time for graduates to be starting up a business?
Historically, more businesses are started during and after recessions than during periods of prosperity. In fact, some of the most well known companies got their start during turbulent times – the Walt Disney Company, Microsoft and Apple, for example.
Why now?
- There’s no better revenge after losing your job or being declined numerous jobs, than starting your own successful company and becoming your own boss. With millions of people out of work, many aggressive people are dusting off old business plans and finally putting them into action.
- Existing companies tend to pull back during a recession. This means that entrepreneurs who know how to seize opportunity find themselves with cheaper real estate, an abundance of available talent and weakened competition.
- Your larger competitors will be geared up to work with traditional media where they can make economies of scale but find it harder to adapt to the smaller more numerous, agile and fragmented micro-groups. This means you can compete on equal terms with them.
- The costs of reaching your audience have come down for you, too. You can now reach your audience almost instantaneously – and for free – through social media
Starting a business is never easy and new entrepreneurs should tread carefully and ensure they do thorough research before starting out. However, many business experts tell us it’s a great time to start. Here is what four of them have to say:
“I think now is a really good time to start a business because everything’s half the price it was two years ago, and therefore the cost base is low. The big companies are struggling and that’s the time for the new young entrepreneurs to get in and have a bite at the fat underbellies.” ~ Richard Branson, Founder and President, Virgin Group
“I would definitely start a new business now. The recession is an inflexion point. Consumers are thinking differently about the value/price proposition of products and services. There is room for new business models right now and for startups to grow quickly.” ~ Lexy Funk, Co-Founder and CEO, Brooklyn Industries
“Absolutely. Contrary to what most folks think, adverse and unstable times create incredible opportunities. Some of the most well-known brands that have now become household names were born in unfathomable recessions.” ~ Gary Whitehill, Founder, The Relentless Foundation and New York Entrepreneur Week
“Absolutely! Basic overhead to launch a company continues to get cheaper, good labour is still plentiful and more community resources are available to advise and accelerate entrepreneurs. Companies with desirable products or services who generate revenue and organically grow during a recession are in excellent shape for the future -- especially when raising capital.” ~ Jennifer Hill, Chairwoman, Astia NYC Advisory Board
