‘If I could start again, I would set up more businesses during recessions . . . such a climate is perfect for young, enthusiastic and nimble companies to set up and thrive. This is one of those times.’ Richard Branson, writing for the Telegraph, outlined this optimistic opinion on starting a new company in recessionary times.
Indeed, many of us might not consider a recession to be the ideal parent to give birth to a brand new company. However, some of the most successful businesses have had their origins in recessionary times: Hewlett Packard, Burger King, CNN and Hyatt Hotels, to name but a few. These companies are now multi-billion dollar corporations.
There are a number of concrete advantages to starting a business during a recession. Firstly, starting a business takes time, energy and determination; requirements that a lot of people fulfil when faced with unemployment, but yet have a hunger to work and succeed. After all, during a period of growth, we are busy chasing ourselves to keep up with workloads and hectic lifestyles – not to mention ‘The Jones’.
What can a recession offer a start-up business?
- Start-up costs such as labour and office space are more affordable, and their availability is not an issue during a recession
- There are many State financial incentives to hire staff, such as the government Intern scheme
- Grants are readily available to new companies through local enterprise boards
- There is a surplus supply of highly qualified people to employ
- Setting up a business in a recession teaches you key business endurance skills. Once the recession ends and economic growth returns, you will be left with a business capable of operating in a harsh economic climate, and subsequently ready to reap the rewards of sustainability and survival
- Other businesses and companies that struggle during a recession welcome fresh ideas from new businesses which could revitalise their existing business
- Media are always on the look-out for success stories in a recession; this offers a new company many opportunities for free public relations and editorial
Yes, starting a new business at the best of times can be a risky affair. They do say those who fail to plan – plan to fail. Before commencing your new business, it is essential that you look at you – the roots of the new venture. Nothing grows if the roots are inadequate to support the various branches of any business. Regardless of your qualifications and experience, many of us lack basic business skills like how to set up a business. Therefore, it is advisable to participate in a course that will equip you with the knowledge and ‘know how’ to ensure your business has the start and support it deserves.
Griffin College run a Level 3 ‘Business Start-up for Today’s Entrepreneur’ course. This is a Distance Learning course. As part of this course, the student will complete eight different modules, including: market research and writing a business plan.
Another added incentive in completing a ‘start your own business course’ is: when you present your business plan to an agency for grants (perhaps) or to a bank for finance, you will be more credible in their eyes with such a course completed.
Ireland has been in recession now for a number of years; yet, in 2010 over 14,000 new companies were set up in Ireland by entrepreneurial people who were willing to take risks. A recession does require risk takers to kick start growth and to create jobs. There has never been a better time to start a new business; the government has put into place a diverse range of incentives to encourage such start-ups. Sometimes all it takes to take you out of unemployment is a leap of faith into an entrepreneurial world!