According to Forbes, startup activity hit an all-time high in the U.S. during the last recession. So, if you’re considering launching a business, don’t let current economic conditions hold you back.
There are several good reasons to start a business during a recession.
So, if your Atlanta business is joining the likes of Uber, Airbnb, and WhatsApp who all got off the ground during 2008-2009, there are plenty of reasons why starting a business during a recession can be a smart move!
Before we head into detail, our digital creatives here at Rockers Technology will give you a brief list so you can get started with your next Atlanta entrepreneurial venture!
- Lower Costs
- More available talent
- Employees are more available
- Time to focus on your business launch
- Less competition
- Access to government funding
- More opportunity
- Increased media attention
- Lower Interest Rates
- More available office space and equipment
Ok so with the mini brief in place, let’s start by looking at each of the 10 best reasons for launching a business In Atlanta during a recession in a little more detail.
Starting with one of the best reasons for creating your empire, by exploiting lower business costs.
1. Lower costs
According to Startup magazine based in the UK, a staggering half of all the Fortune 500 companies were created in a crisis.
One of the biggest advantages of starting a business during a recession is that costs are generally lower across the board.
From office space and equipment to marketing and advertising, everything is typically more affordable during an economic downturn.
The main reason for this is that businesses are struggling and are willing to negotiate better deals to stay afloat.
So, if you’re looking to get the most bang for your buck, a recession is the time to do it.
2. More available talent
According to marketing guru Jay Baer, “Recessions are the best time to hire great people at a bargain.”
With more people out of work, you have a larger pool of talented employees to choose from when building your team.
And since salary expectations are also usually lower during a recession, you can often get top-notch talent at a fraction of the cost.
3. Motivated employees
Unemployed workers are motivated to find a job and will likely be grateful for the opportunity to work for your company.
During a recession according to business experts, Bain & Company, you can find employees that will be “hungry to prove themselves” and will work hard to help your Atlanta business succeed.
Tapping into a pool of talent that is highly motivated can give your business a real leg up, especially during the early days when every advantage counts.
4. More time to focus on your business launch
With so many people out of work, you may find that you have more time to focus on launching and growing your business.
There will be fewer distractions and you can put all of your energy into making your business a success. You may even find that you can get some help from unemployed friends or family members who are willing to pitch in during the early days.
To discover more about making your business in Atlanta recession-proof, head over to 12 Recession Proof Hacks for Businesses, Atlanta
5. Less competition
During a recession, many companies go out of business, which means there’s less competition for both customers and talent.
This is one of the main reasons Jay-Z decided to launch Roc-A-Fella Records amid the early-1990s recession.
He knew that he could stand out in a smaller field and get noticed more easily than if he had launched during better economic times.
6. Access to government programs and funding
During tough economic times, the government often steps in with programs and funding to help businesses get off the ground.
These programs may be more accessible during a recession, so it’s worth looking into what’s available to you.
To find out more about the type of funding available, check out The Paycheck Protection Program which was set up to help small businesses during the coronavirus pandemic.
For more help building a business during a recession in Atlanta, you could also head over to find out more about Invest Atlanta.
This is a great resource for small businesses as they provide loans, grants, and other forms of support.
Government agencies are not the only ones that offer funding during a recession. There are also philanthropic organizations and private investors who are willing to help out small businesses.
These organizations may be more likely to invest in companies that are socially responsible or that have a positive impact on the community.
So, if you have a great business idea and you’re wondering if you should launch your Atlanta business during a recession, the answer is yes!
There are plenty of reasons to do so, and with the right planning and preparation, your business can thrive.
7. There are often more opportunities during a recession
With businesses struggling, there may be more room for new businesses to come in and fill the gaps.
This can be a great time to launch a business as you may be able to tap into untapped markets. For instance, start-ups such as
Airbnb and Uber thrived during the 2008 recession.
Thinking about your business a little more laterally can mean you find opportunities that others haven’t discovered during a recession.
A recession can be a great time to launch a new business. One reason for this is that people are looking for ways to save money during tough economic times.
So, if you can offer a product or service that helps people save money, you’re likely to find success.
For example, during the last recession, businesses such as discounters and dollar stores did well because people were looking to save money on everyday items.
8. Increased media attention
With businesses struggling, the media is always on the lookout for stories about companies that are thriving.
So, if you launch your Atlanta Business during a recession and do well, you’re likely to get some positive media attention — which can do wonders for your business.
Some start up’s which have gained media attention and have gone on to be massively successful are:
- Appsumo- an email list service
- Mailchimp- An international marketing automation company
- Basecamp- A project management software
- Slack- A communication platform for businesses
- Trello- A project management web application
9. Lower interest rates
Interest rates usually go down during a recession, which means you can often get loans and lines of credit at lower interest rates.
According to business guru, Ramon Ray, “This is a great time to get a loan for your business.”
This can save you a significant amount of money in the long run, especially if you’re planning on using a lot of debt to finance your business.
Kabbage, based in Atlanta, and OnDeck also offer small business loans with rates that are often lower than traditional bank loans.
10. More available office space and equipment
With more businesses shutting down during a recession, there is often an increase in the availability of office space and equipment.
So if you’re looking to launch your Atlanta business on a shoestring budget, this could be a great time to do it.
You can often find deals on everything from office furniture to computer equipment.
Make sure if you are renting that you have a good understanding of the terms of your lease so you are not blindsided by any rental increases that may come down the line.
It could also be a good time to negotiate with landlords who will be more open to working with you during these tough economic times.
And to end with…
So, there you have it. 10 reasons why you should launch a business in Atlanta during a recession.
If you’re thinking about starting your own business in Atlanta don’t let a little thing like a recession hold you back!
With careful planning and execution, your business can thrive in any economic environment.
Rockers Technology offers a comprehensive suite of products and services that include web and mobile app development, marketing, creative design, and mobile integration to help you launch your Atlanta business.
Our team of experts is dedicated to providing the highest quality customer service and technical expertise.
We are always looking to exceed expectations on every project, and our developers and creators work around the clock to turn ideas into reality.
Get in touch today with one of our incredible team members to find out more.