If you need some inspiration to help get your plan started, check out our sample business plan library , and download our free business plan template.
As mentioned before, you might also want to check out our business plan template available through LivePlan. Start planning today and find ways to leverage the current economic difficulties to help your business idea grow into a lean, recession-proof business. Kody currently works as the Inbound and Content Marketing Specialist at Palo Alto Software and runs editorial for both LivePlan and Bplans, working with various freelance specialists and in-house writers.
A graduate of the University of Oregon, he specializes in SEO research, content writing, and branding. Startups and This Recession. How recession-proof is your business plan? Read Starting By: Kody Wirth. Find answers to new problems Difficult economic times lead to new problems. Inexpensive supplies and materials Continuing with the trend of things being cheaper, in a recession, companies are more than likely selling off products, assets, or equipment at a much lower cost.
Better credit options As businesses look for emerging relief options like the Paycheck Protection Program and SBA Economic Injury Disaster Loans , to help them mitigate loss and improve cash flow , you should be looking at more traditional credit options.
Less competition entering the market A healthy economy attracts more competition. Set up for long-term success Balancing the short-term benefits of launching in a crisis with long-term post-crisis planning is necessary for your business to succeed. Kody Wirth. So, you will be able to buy machinery and office furniture at prices way lower than usual during a recession.
You might even be able to buy a business outright at a bargain price during an economic slump. When the economy is booming, interest rates are kept high to keep inflation under control. But governments and banks will reduce interest rates during a recession to stimulate the economy. So, if you need to raise finance for a new venture, now would be the cheapest time to do it.
The interest rates are likely to remain low even after the economy begins to pick up again, too. So you will have low-cost financing for several years to come. Starting a business during a recession can provide many PR and marketing opportunities. The media, for example, would love a story about an entrepreneur who defies the trend and brings a product to market during an economic downtown.
Depending on the product that you sell, you could also find that you are praised for supplying an essential item at an affordable price during tough times. And, when the world returns to normal, you will have the story that your business was founded in a recession and survived a global pandemic. As you can see, a recession could mean less competition, lower start-up costs, and lower operating costs for new businesses. So, if you have a product or service that people will still need during a recession, then now might the right time to launch your new business venture.
The Atlanta Small Business Network, from start-up to success, we are your go-to resource for small business news, expert advice, information, and event coverage. Follow us on Facebook here and stay up to date or catch-up on all our podcasts on demand. Save my name, email, and website in this browser for the next time I comment. But is waiting the only option? One thing that General Motors, Burger King, Airbnb and Uber all have in common is that they were started during recessions.
GM opened its doors in in the aftermath of the panic of In the U. In the most recent recession of , Airbnb and Uber set up business and grew as successful startups. If these successful companies could be established during recessions, so can yours. So, what are some of the factors that made it possible for these companies to launch? Many new businesses take out loans to satisfy operational costs until earnings reach a certain volume.
However, entrepreneurs sometimes get stuck paying high interest rates for low loan amounts. Notify me of followup comments via e-mail. Free signup to get a free ebook on How to Save Money on Everything! Constantly expanding, it will be the biggest money saving ebook available, and it's FREE! Information presented on Personal Finance Blog by MoneyNing is intended for informational purposes only and should not be mistaken for financial advice.
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