At present, the economy is suffering from a recession. Businesses are shutting down while unemployment is on the rise. Many budding entrepreneurs will probably have the question followed by a doubt that this may not be the right time to establish a business. An understanding of the circumstances is crucial in times like this. The economy may suffer in monetary terms, but it still requires the daily necessities to keep the life cycle going.
What are recession and depression?
A recession is a situation when the economy comes to a stop due to several reasons:
- Substantial growth in unemployment.
- Diminishing output
- Diminishing productivity
- Diminishing or negative GDP
- Bankruptcies
- Increased savings rate
- Low or no inflation
All these factors depend on each other in some way. During these times, the economy starts losing its resources of producing income. When a recession exceeds two years, it is called depression.
Several economies had face depression and recovered, although it took time. But during this time, it becomes hard to create a startup due to a lack of funding and investment. However, to come out of depression, the economy needs a push. And for that, several startups are essential. Not all aspiring entrepreneurs can establish a successful business during a time of depression. It takes more than the usual effort to pull a successful business plan during this time that also within a strict budget.
What are some tips to start a business during these times?
The very first thing you need to do is come with a small but efficient plan. By that, you cannot target the global market yet. You have to think within your geographic location and observe the demand of the general public. Now, due to lack of funding, you will be having very few capitals. So, take your business online. It will not cost you any tax to hire any place, just a minimum amount for your high-
speed internet.
Although you have settled down with the base plan, the main concern is still hanging in the air. The type of your business you are going to establish. See, once you observe the requirements, you will realize a few things that will never go out o demand. Students pulling up all-nighter to complete their syllabus will feel hungry and in need of coffee. An online platform that serves coffee or healthy snacks after midnight will surely be a hit. Other than that, a recycled clothing online business that supports nature and also has input in the GDP is also beneficial. Parents are always worried about their children's academic performances, so tutoring services will never go out of the market.
You should sit down with your team and plan your business focus with one of the above ideas. Although the recycled clothing business may require the people in the town to contribute, it is still not a difficult task and will help them none the less. People can get affordable clothing while recycling their own in the time of depression.
