- PPF Points
- 5,709
Historically speaking economic downturn is most often followed by a startup boom, and these booms are often what rekindle the economy. The specific metrics behind all of this is something of a nightmarish lecture from a dreaded college econ class you have tried desperately to forget (and something hottly debated by politicians, who I should point out are not economists but also related to nightmares and things you would like to forget) but I digress, where was I?
Oh, startups in economically troubled times. Yes! one of the advantages that you have in economically troubled times is that established companies tend to be overly conservative during periods of economic distress. They invest less in R&D, they restrain growth, and they often leave gaping holes of unmet or under-satisfied need in the market which a savvy entrepreneur can exploit. In addition, when markets show slow growth investors look for alternative investments that have higher potential returns - a good thing for you as you launch a new business!
(Governments may also be funneling money into the market in the form of SBA loans or grants to bolster the economy more readily than during economic booms, so take advantage of those where appropriate.)
Now all of that is specific to the environment. You still need a well modeled business in any economic climate, and a solid strategic plan that you execute well to be sucessful - to say nothing of your own personal capacity for risk. But you were just asking about economic conditions.
Oh, startups in economically troubled times. Yes! one of the advantages that you have in economically troubled times is that established companies tend to be overly conservative during periods of economic distress. They invest less in R&D, they restrain growth, and they often leave gaping holes of unmet or under-satisfied need in the market which a savvy entrepreneur can exploit. In addition, when markets show slow growth investors look for alternative investments that have higher potential returns - a good thing for you as you launch a new business!
(Governments may also be funneling money into the market in the form of SBA loans or grants to bolster the economy more readily than during economic booms, so take advantage of those where appropriate.)
Now all of that is specific to the environment. You still need a well modeled business in any economic climate, and a solid strategic plan that you execute well to be sucessful - to say nothing of your own personal capacity for risk. But you were just asking about economic conditions.
