Economic recessions are great!

[Deep Dish]

There is an idea brewing in my head and the idea has now been confirmed by reading some articles. Economic recessions are a great time to start a business. Recessions are comparable to forest fires, burning through bushes, clearing the ground of clutter, scorching through old trees, and in hearing economic news it's easy to feel overwhelmed with gloom and doom; but recessions, as with forest fires, are cycles of renewal. Poorly conceived, poorly executed, poorly managed businesses are wiped out and it's opportunity for new (hopefully better conceived) businesses to sprout. It's the basic concept of buy low, sell high. Once the economy recovers, those companies formed during a recession and survived will have advantageous potential to those companies established during bull markets, and those late comers may not know how good their "shyt" really is when another bubble bursts. There are also less competitors during recessions.

This strategy does come with a few strings attached, of course. You need a solid business plan, low start-up costs, and low overhead. You need to be frugal. You also need to be employed, especially during recessions, as self-employment is not an immediate solution to regular employment.

Myself, I am launching a production/promotion company specializing in graphic design work for party promotions, and I'm also toying with the idea of private investigation, but all this is in addition to working a full-time day job (state government) and part-time night job (restaurant). (I catch only about four hours of sleep. One of my roommates is a World of Warcraft addict, if he's not at work he's playing the game, and I just don't understand why he wastes so much of his time. Time is precious even when you have lots of it. You can take my money but time is the one thing you never can get back.)

I predict STR8UP will chime in...

 

[SuavePlaya]

I agree with you when you say recessions are a great time to start a new business it really makes great competition. The recession shows what businesses aren't really providing value for us and makes way for the new businesses that are providing value. The government is throwing money at failing businesses which is something I dont get and probably wouldnt want to know.

 

[Rollo Tomassi]

Poorly conceived, poorly executed, poorly managed businesses are wiped out and it's opportunity for new (hopefully better conceived) businesses to sprout.

Unless of course the macro-economy is so dependent upon these ill-conceived, ill-managed businesses which become too large to fail that we hand them ours and the next generation's tax dollars indefinitely to support them through this forest fire and perpetuate mediocrity into the next boon time and the ƒuck us all the more again.

But that's just me. I agree though, now's the time to grow a business.

 

[STR8UP]

Actually, this is the best time to be in a more HEALTHY business than your competitors. When you come out of the other side you already have your name established, and you are the sh!t.

As you and Rollo probably already know, TWO of my major competitors right down the street have closed in the past few months....NICE!

Second best would be to have the resources to start something during a down time or even better yet buy an existing business that has potential.

More wealth is made coming out of a tough economy than any other time.

Wealth doesn't "evaporate", it simply changes hands (well it is all kind of smoke and mirrors but thats beyond the scope of this discussion). This is why "the rich get richer". You could take all of the wealth from the richest people in the world and distribute it evenly among the population, and in 5 years it would be right back where it started.

I know it's almost impossible to get a loan right now, but if you can buy real estate, you will (most likely) be filthy rich in ten years. It went up way too fast, and it fell way to fast. it is now seriously undervalued. You can easily buy properties that throw off positive cash flow. Two years ago that was all but impossible in most areas.

 

[AAAgent]

i've always had a dream of starting a business. My father is a entrepreneur who is very successful.

I've also had a dream of traveling the world. I am only young once and once a steady job comes and in the future possibly a family i will not have as much freedom as i do now. I wanted to get out of the country for 3 years and teach oversea's while i learn different cultures and languages.

When i would come back i would resume working and saving for starting up my own business.

But now does seem like a great opportunity.

input?

 

[horaholic]

Im a painter, and not only does the winter slow us down, but the recession is drying up companies right and left. Im on unemployment (which is why im posting so much lately), with really no chance in hell of finding a painting job for a couple more months. My Boss is struggling just to keep his shop. He has painted like 4 doors all week. Its FVCKED. Im glad I dont have my own company right now. I get unemployment, but my boss is living off his life savings.

But, whoever can survive this downtime, or get something started near the end of it, will be sittin pretty when things do turn around. After this recession, we will hopefully see in increase of quality for goods and services, since the crappy companies should be gone.

Since I have no work, Ive been trying to build a website. Im teaching myself how to write code, and build databases and stuff. I have a unique idea that has a potential to make me some money, so I've been plugging away trying to teach myself this shyt, that I have zero experience with.

I realized last night, that I can use my website idea as an opener for chicks, cuz I need 'random input from my target market.' The site is geared towards younger females as a whole. It's both an opener and a DHV at the same time.

 

[speakeasy]

I agree with the forest fire and recession analogy and how the fire clears out the weeds naturally. But right now, our government is playing the role of fire-righter and trying to stop it from happening.

 

[mpimpin]

We've been discussing just this in my Information Systems class. I think a lot of us business majors will be graduating at a fairly decent good time and might have some luck with finding jobs or entrepreneurship.

With that being said I agree with you about a recession being a good time to start something, but the period right after a recession as well.

I'm one of the group of people that are finding the economic downturn to be a good thing.

 

[Desdinova]

Where I live, there seems to be a surplus of jobs and not enough people to fill them (baby boomers retiring?) I moved myself out of a job that REALLY wasn't paying me enough, was stressful, and the work was drying up, not to mention the quality of the product going out the door was WAY below par. So, I moved into a job that guarantees that not only will guarantee work, but the demand will be going up and will start to taper off when I retire.

My old work place still hasn't replaced me, and the place where I am is having a difficult time hiring people. And if that's not enough, all our positions are under review and the pay will be going up. Times are good

I've also got a little side project which I will launch probably in the spring or summer. It's solely a money-maker using entertainment to exploit the sexual desperation of AFCs

 

[ready123]

I've also got a little side project which I will launch probably in the spring or summer. It's solely a money-maker using entertainment to exploit the sexual desperation of AFCs

bikini car wash?

 

[OzyBoy]

I think economic recessions are good too. Things get cheaper. :crackup:

 

[Desdinova]

bikini car wash?

Not quite, but you're thinking along the right lines

 

[Deep Dish]

Hey guys, if you want something cool to check out, check this out. This is a design I made to promote the launching of my production company:

Click here

 

[Cry For Love]

Unless of course the macro-economy is so dependent upon these ill-conceived, ill-managed businesses which become too large to fail that we hand them ours and the next generation's tax dollars indefinitely to support them through this forest fire and perpetuate mediocrity into the next boon time and the ƒuck us all the more again.

But that's just me. I agree though, now's the time to grow a business.

Come on man, there is no such thing as too big to fail. The bigger a malfunctioning company is, the more important it is to let it fail to stop hogging up resources and keeping labour unproductive

 

[daring wraith]

To say economic recessions are great or bad I would say depends where you are in the world. If you don't have money things gets worse, if you have have money, things can, depending on what you do with it get better. (Speaking from a standard of living sense)

Speaking from a UK Perspective only

For example recessions hurt large corporations, therefore people are made unemployed, banks are forced to restrict lending. Most significantly inflation increases and interest rates rise, coupled with the financial crisis, makes for "living" to become more expensive.

Interestingly enough, the people who have significant money (relatively speaking) have a problem, what to do with it.

Can't put money in shares, can't put money in property, if we save we're earning pitiful interest actually we're losing money because if we, for example are earning 3% and inflation is running at 5.5%, we're losing out because our money is depreciating in value.

However DeepDish is correct when he says times "can" be good, as everything has become a "buyers market", you can use the money you already have to exploit those without it and gain a competitive advantage.

Im actually doing this with property at the moment, most landlords are mortgaged up to the hilt and can't afford to pay the increase in interest rates to the bank, so i buy the house off them at low market value (because of depreciation), take the rents and wait for the financial storm to decrease in intensity, house prices increase and i make a large profit.
Just an example of how unfair things are.

Regards,

Adrian. esq

P.S. Im not trying to be nasty to other landlords or fellow human beings, this is just how business goes.

 

[azanon]

I think economic recessions are good too. Things get cheaper. :crackup:

This is what I've enjoyed. My wife and I have been fortunate enough to still be prospering at our previous rate (income wise), so I've been able to buy stuff at ridiculously low prices lately.

Of course I've taken a healthy hit in my portfolio, though.

 

[Alle_Gory]

Not quite, but you're thinking along the right lines

Strip club.