Why Is It That The Recession Is The Best Time To Start A Business

By Author: Elizabeth Miranda
Total Articles: 51
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It's not as crazy as it sounds - the recession really can be the best time to start a business venture. But be careful when choosing. All businesses require investment so in financially turbulent times it pays to be cautious not only about what you invest in but also how much of your hard-earned or hard-borrowed and yet to be paid back cash you plough into any brand new endeavour.
As a guideline, we're looking for a good business for a small outlay. However, let's not mistake small outlay for the cheapest opportunity. As we're all too aware, there are plenty of supposed get rich quick schemes that don't cost a lot of money to set up, the problem with these is that they don't actually work and even if you've not spent your entire life savings you're unlikely to ever see the cash you put in come back, and your even less likely to actually earn a living from these scams.

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So, what else might be considered? It's worth keeping in mind that a large number of ‘go it alone' concerns fail within the first three years of their commencement. This is one of the reasons ...
... why franchises are suited to those who want to be their own boss but lack experience. A franchise allows people be their own boss but there's a support network behind them whenever they need to tap into it. Franchisees are also more likely to do well as they are part of an already established and proven brand organisation.
As for the delicate matter of finances banks are happier to lend money for the purposes of funding franchises than they are for the purposes of helping a newcomer set up an untested idea. It's especially worth considering this in recessive times as financial institutions grow ever more discerning about who they will lend money to and for what businesses they will offer support. We are more guarded about what we spend our money on when world finances look to be all at odds, so too are banks and other lenders.

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The answers lie with franchise. But choose with prudence. The hot option used to be well-known fried chicken company or famous retail group for luxury clothes, but things have changed. When thinking about investment ask yourself: Is it likely that people be spending more money on take-away chicken meals when they're forced to budget in a recession, or less money? Will they be splashing out on luxury goods or, like many others, trying their best to economise?
Let's agree that it's always the treats that go first - like ready cooked fast food and luxury items that we can survive without. It's a truth that even well-established companies are expected to see a dramatic drop in sales as the downswing becomes more apparent. This would affect you as a new franchise operative with such companies.
Logically, an uprise in online business is likely. The Internet continues to grow and represents the place that the majority of us turn to as our first source of information or to service many of our purchasing needs. Business success online is reliant on the right kind of marketing (a surprising number of people still think it's enough to have a website and are then disheartened when no body visits it or buys their products). It's simple, nobody knows that the site is there unless they are lead to it.
How can that happen? Well, this is where the expertise of a company like WSI is best put to good use. WSI has been helping small and medium sized businesses win online for over a decade. And with the swift rise in the number of businesses that are going online, the number of potential clients for a company like this is expected to grow considerably. In vivid contrast to luxury items, necessary services like those provided by WSI will be increasingly more necessary.

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That's what makes a consultancy franchise with WSI the model business to start up in a depression.
And to end; shall we see if this opportunity meets with the two main measures for a good business to start in a downturn:
1. We were looking for a good business for a modest investment. Check. A WSI franchise is affordable and recession friendly coming in at under $50,000.
2. The product is a necessity for businesses, not a luxury item which people can take or leave.
So, now you know why the recession the best time to start a business. Because everyone in business is eager to thrive and survive the crunch, therefore by starting a business with WSI and working as a consultant with them you'll be carving a career for yourself at the same time as helping others get the best out of their own concerns. It's the worst time to do nothing and the best time to start a new business.