Don't Be Flustered By The Recession! Entrepreneurs Can Thrive!

Whoever you talk to, it is unlikely you will hear anything good about the recession. Almost every profession imaginable from securities brokers to teachers has been struck hard by the recession. It would seem obvious that entrepreneurs would have to face the same reality. But the situation for entrepreneurs is actually a little more complex than that.

There were actually more millionaires created during the Great Depression than in any time in history. History has shown that new business leaders tend to be created in times when things are bad for everyone else.

So is the answer to simply go out and create a business using the same strategies that would be used in every other environment? Unfortunately, making a business successful in a recession is a much different process than one in a less volatile economy. The good news is, the larger corporations that are used to dominating the market are weak and with a little ingenuity the entrepreneur can find a way to draw away some of their customer base. They can also find ways to channel the tides of the recession in their favor.
In order to be successful, there are several things that an entrepreneur must do in a recession:

Be cost effective - One of the downsides of starting a business of any kind during a recession is that there are not going to be many potential investors and most of the investors are going to invest in established companies or startups that are not going to be very volatile. In order to create a successful startup, entrepreneurs are going to have to make their own funds work as best as possible. This will call for creative efficiency and efforts that yield a high return on investment. After you have demonstrated that you can use your own resources to your best possible advantage, you will probable find it a lot easier to convince investors that you know what you are doing and that they should invest in your idea.

Know what products work best in a bad economy - It should be obvious that some products are hit hard during a recession, but others can thrive. Of course, most businesses have a chance of being successful in a bad economy, but entrepreneurs need to be realistic about their odds of success with any product or service they plan to introduce. Many experts such as Adrian Savagehave created new products that streamline service models and make operations more cost-effective.

Take advantage of the fact other people need help financially - Since many people have lost their jobs and are having trouble finding new ones, they may be desperate enough to work part time. This may give you the opportunity to find allies or even partners you might not be able to find otherwise.

Of course, these are just the beginning. You could probably write an entire blog about being an entrepreneur in a recession, so that is what I am going to do.