Is 2020 a good time to start a business? For innovative entrepreneurs with determination, this year could be the ideal moment to start a new company.
Covid-19 has dominated the headlines this year. With signs indicating a global recession is likely, many businesses are taking a more cautious approach. But when you look back through history, some of the biggest brands were formed during recessions. Companies like Burger King, FedEx, Microsoft and General Motors were started in the midst of economic recessions, but have grown to become global household names.
Part of the reason that recessions are a good time to start a business is that innovation and creativity are essential when times are challenging. During a recession, it’s easier to understand the needs and wants of prospective clients. For example, 2020 has seen a huge growth in home delivery services, as more people choose to order products over the internet. Other businesses developed in 2020 have included manufacturers of medical masks and respirators. During a recession, it’s simpler to understand what people need.
There also tends to be less competition during a recession. When other businesses are taking a more cautious approach, you have more opportunities to fill the gaps in the markets that other companies are vacating.
The costs associated with starting a business can also be lower during a recession. Particularly if interest rates are low, loans can be less expensive, and the price of products and services to start up a company can be more easily negotiated.
If you have a business idea, now could be the best time to turn this idea into reality. If you have an idea but aren’t sure how to get started, a business course can help to give you the skills, knowledge and understanding to realise your goals. Oxford Business College is here if you’re looking for a course that can help you to turn your business ambitions into reality.