Recession = Business Opportunities

Recession (ri-sesh-uh n)

n. 1. Opportunity

A recession doesn’t have to be a dirty word. It can actually be the perfect opportunity to start a new venture or grow your business by earning a greater market share and increasing net income over the long run.

It may seem like starting a business during a recession is always a horrible idea, but for some it’s actually the perfect time. For businesses, a recession can mean lower costs and increased opportunity.

Costs

To attract new business during a recession, prices for some items such as rent and advertising rates are lowered. Also, vendors are more willing to negotiate for lower prices or increased benefits.

Opportunity

During a recession, there is an increased amount of market share up for grabs. This is because many competitors are forced to close their doors for good, close a few locations, or focus on other areas besides increasing or even maintaining their current market share.

Potential customers, who had been very loyal to their suppliers previously, are suddenly looking for new suppliers because of cost concerns.

Also, as competitors close their doors there is an increased supply of quality, highly skilled workers ready to be snatched up.

A recession may also be the perfect time to grow your business. Study after study has shown that businesses who increased their marketing efforts during a recession enjoyed a higher net income not only during the recession, but for at least 2 to 3 years following.

On the other hand, businesses who decreased or cut their marketing efforts completely during a recession lost significant market share and suffered a decrease in net income for several years.

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