Many people might think that this is the worst thing one could do.
However, there is no wrong or right time for starting a business.
Various successful companies started when the economy was facing difficulties. For instance, Thomas Edison produced his first light bulb during the recession in 1879; yet his company became a multinational General Electric company.
The economy’s state may play a vital part in starting a business, however, the consumers’ wants and needs are as equally important. Especially in the state of recessions, where consumers are desperately seeking for the best deals.
When launching a business, one should always have a set of thorough management strategies that ensure the company’s success.
Two very important aspects to consider when creating management strategies are rivalry and consumer wants and needs at specific prices. Both of these aspects may lead to a failure or success of a business.
According to Michael Porter the 5 forces of rivalry are: supplier power, threat of substitutes, degree of rivalry, buyer power and barriers to entry.
Thus, as long as the business owner pays attention to the forces of rivalry and to the consumers’ specific wants and needs at specific prices, a business should not easily fail, unless there are specific financial problems that would acquire the help of the economy.
Next year still looks rocky for small business. But if you want to start a business, go for it. Some of the most successful companies got started in tough times.
MLA
Clifford, Catherine. “Startup Guide: Launching a Business in 2012 – Oct. 5, 2011.” CNNMoney – Business, Financial and Personal Finance News. 05 Oct. 2011. Web. 09 Oct. 2011. .
“Porter’s Five Forces.” QuickMBA: Accounting, Business Law, Economics, Entrepreneurship, Finance, Management, Marketing, Operations, Statistics, Strategy. Web. 09 Oct. 2011. .