A recession can bring opportunity

It may surprise you to learn that some of the world’s most successful business were started during an economic downturn.

General Motors launched in 1908, when the US economy was in turmoil after "the Panic of 1907" financial crisis. Meanwhile, Burger King flipped its first burger in 1953, when the US was again in recession.

Airbnb is another great recent example. In the months leading up to the last major financial crisis between 2007-08, two Californian friends had the idea of renting out an air mattress in their San Francisco living room.

At the end of that year, the world descended into an international recession. The pair saw it as an opportunity to expand their business. In the aftermath of the recession, the firm received major funding and their international expansion began. Airbnb is now valued at around £31bn.

These examples show that many of the best, and longest-lasting, companies are set up during downturns. It could be argued that the difficult economic backdrop has made them both tougher and more nimble for years to come.

Digging deep

Make no mistake, getting started in a recession is not a walk in the park. It is likely you’ll really have to scrape and scrimp to make that company successful. You are trying to make it when it is more difficult to get finance and trying to attract customers when there isn't a huge demand.

We are certainly in a downturn again now, as a result of Coronavirus and the subsequent lockdown around the world.

But as history shows, successful companies can be born in tough times. Could there be promising start-ups from the entrepreneurial class of 2020 that will go on to become household names?

If you’re just setting out in business and need some help or advice, please call Ian on 01772 925 230

Alternatively, fill in the form on our Contact Us page, and we’ll get back to you.