A short YouTube video by Mike Andes arguing that a recession can be an advantageous time to start or grow a small business. Andes lists five reasons: (1) lower customer acquisition costs as competitors cut advertising; (2) easier hiring because unemployment rises; (3) assets and resources become much cheaper; (4) experience gained during recession pays off after recovery; and (5) easier to take market share or acquire failing competitors. The piece is motivational and practical in tone.
Chapters
I've gone on record saying that 2022 is gonna be one of the hardest years for small businesses ever. However, I feel like during a recession is one of the best times to start your business and grow and expand. Here's five reasons why. Number one, your customer acquisition cost is gonna go way down because no one else is advertising. Therefore, the ads get cheaper, so you're able to get customers for much lower cost than advertising. The second reason is that unemployment is going to go up. And unemployment goes up, it's easier to find employees and it's easier to get all of your staff and your team. In comparison to when unemployment is really low, it's hard to. The third thing is that everything is pennies on the dollar when it comes to recession. When you're buying land, equipment, trucks, employing people, whatever it is, everything gets really, really cheap. And if you have cash to the side, you can take advantage of that. The fourth thing is that experience gained during that time of recession is going to absolutely pay off when the economy recovers. And the fifth thing is that taking market share during a recession is easier because all of your competition is failing and you can buy them out or take their customers.
