Is recession a good time to start a company?
Answers received so far -
 Nitin Shah |
There are many articles on the web about the same topic. I am posting one of them below Its more interesting to weigh your options when you start with entrepreneurship, thus the answer may be subjective 2 years 46 weeks ago |
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 Vishal Chandra |
In the initial stages of a startup, you are burning capital for resources and have very less (or zero)revenues. Thus its best to spend capital when resources are cheap i.e. a recession. And hopefully by the time the economy has moved out of the recession, you will be in a position to take advantage and get a lot more revenues. e.g. you are building software which will take 8-10 months before you can start selling it to customers on a hosted model. Initially your customers will want free trial for 3-4 months. Thus for this startup the first one year, not much revenues are expected and expenses (mostly related to salaries) will be low if the first one year of the startup was in a recession period 2 years 33 weeks ago |
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Vishal Chandra |
In the initial stages of a startup, you are burning capital for resources and have very less (or zero)revenues. Thus its best to spend capital when resources are cheap i.e. a recession. And hopefully by the time the economy has moved out of the recession, you will be in a position to take advantage and get a lot more revenues. e.g. you are building software which will take 8-10 months before you can start selling it to customers on a hosted model. Initially your customers will want free trial for 3-4 months. Thus for this startup the first one year, not much revenues are expected and expenses (mostly related to salaries) will be low if the first one year of the startup was in a recession period 2 years 33 weeks ago |
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Comments
Yes!!!
There are many articles on the web about the same topic. I am posting one of them below
http://www.thestandard.com/news/2008/03/20/five-reasons-why-recession-good-time-start-company
Its more interesting to weigh your options when you start with entrepreneurship, thus the answer may be subjective
In the initial stages of a
In the initial stages of a startup, you are burning capital for resources and have very less (or zero)revenues. Thus its best to spend capital when resources are cheap i.e. a recession.
And hopefully by the time the economy has moved out of the recession, you will be in a position to take advantage and get a lot more revenues.
e.g. you are building software which will take 8-10 months before you can start selling it to customers on a hosted model. Initially your customers will want free trial for 3-4 months. Thus for this startup the first one year, not much revenues are expected and expenses (mostly related to salaries) will be low if the first one year of the startup was in a recession period