Why the Recession is the Best Time to Start a Business

It sounds incongruous doesn’t it, but the recession really can be the best time to start a business. But not just any business. 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 a new concern.

            So we’re looking for a good business for a modest investment. But let’s not mistake modest for cheap. 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, let alone earn you more money.

            What else? Well, it’s worth bearing in mind that a frightening number of ‘go it alone’ concerns fail within the first three years of set up. That’s why franchise is so suited to those who want to be their own boss. With a franchise they can still be their own boss but there’s a support network behind them whenever they need it. They’re also more likely to do well, as they are part of an already established and proven brand of goods or services.

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            With regard to 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 untried business. This aspect is especially worth consideration in recessive times as financial institutions grow ever more discerning about who they will lend money to and for what purposes. Just as we are more guarded about what we spend our money on when world finances look to be all at odds, so too are banks. Understandably.

            Franchise businesses look like the answer then. But choose wisely. While it might seem to be prudent to go with a well-known fried chicken company or famous retail group for luxury clothes, this really is a case where caveat emptor or buyer beware should be firmly imprinted on the prospective franchisee’s mind. Ask yourself: Will people be spending more money on take-away chicken meals when they’re forced to budget in a recession, or less? Will they be splashing out on luxury goods or, like many others, trying to economise? The answers are clear. It’s the treats that go first – like ready cooked fast food and luxury items that we don’t need. No matter how well established such companies are, it’s a truth that they will expect to see a dramatic drop in sales as recession takes hold. And that would affect you as a new franchise holder. Yes, you want a piece of the pie, but you need to make sure there are enough pie pieces left in the first place.

            So, what sort of franchises and business are predicted to do well in recession? Online business will take a natural lead in the proceedings, with more and more cost conscious companies opting for an online presence as opposed to a high street one.

            Logically, an increase in online business is expected. The Internet continues to grow and represents the place that the majority of us turn to as our first source of information. But business success online depends very much on the right kind of promotion. 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 it’s there until you let them know.

            This is where the expertise of a company like WSI comes into play. WSI has been helping small and medium sized businesses win online for over a decade. And with the rapid rise in the number of businesses that are going online, the number of prospective clients for a company like this is expected to grow significantly. In stark contrast to luxury items, necessary services like those provided by WSI will be increasingly in demand.

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            That’s what makes a consultancy franchise with WSI the ideal business to start up in a recession.

            And to conclude, let’s see if this opportunity meets with the two main criteria for a good business to start in a recession:

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, why is the recession the best time to start a business? Quite simply because everyone in business is eager to thrive and survive the crunch. By starting a business with WSI and working as a consultant with them you’ll be carving a career for yourself whilst helping others get the best out of their own concerns. That’s as near to recession proof as you can get.