It’s the big “R” word. Since the prime mortgage bubble (among other bubbles) burst middle of last year, a lot of businesses have been feeling the crunch. It’s not only small businesses and entrepreneurs who have been on the losing end. Even large corporations have been filing for bankruptcy. Big industries, like the American auto industry, had to be helped with massive bailout schemes.
Is it then a good time to start a business during recession?
The answer is a definite maybe. This is not necessarily the best time to be taking risky investments. However, if you plan your business just right, then you might be in for a successful venture. Here’s why.
It’s a buyer’s market. These days, the market is favoring buyers, and not sellers. In my experience trying to sell homes for a few friends, we’ve always had to contend with buyers’ offers. Because everyone else is selling cheaply these days (with the financial crunch), competition is tough.
Therefore, if you’re planning to start a business, you can expect good deals on assets, equipment and other things that a business may need (be it hardware or software). People are letting go of properties easy, and these are ripe for the picking.
Everything is cheaper. Related to the first point, many thing are cheaper in times of recession. Not only are buildings, assets and other products cheaper, even services are cheaper. Because a lot of people are being given the pink slip at work, many will be starting to freelance. Some would also agree to take jobs at lower rates than their previous ones.
If you’re planning to start a business, it might make sense to start now, while labor is cheap.
It’s the same with investing with stocks. Common sense might tell you not to buy shares of stock while prices are dropping. But long-term investors actually prefer to buy stocks while prices fall, because they consider the long-run average cost to be more important than the short-run returns. A lower long-run average cost, compared to a higher return (say, when you sell shares once the prices are back up) will give you some yield.
There’s no way than up. It’s a matter of perspective. When things are looking down, you should expect them to improve one time or another. If you start a business with a booming market, you might be facing tough competition from other people who have the same idea. But if you’re starting a business during a recession, then everyone else is thinking of survival or even subsistence–therefore, no one is really too keen on spending money to start up a a business and compete with you.
This is a maybe rather than a definite yes because this business strategy is not always applicable in all industries and instances. If you have extra money to burn, then by all means go for it. But if you expect banks to lend you money, then watch out for tough times–credit is expensive these days. But if you have a business plan that won’t involve much external investment, and if you can bootstrap your way into profitability, then starting a new business can be a worthwhile activity even with a recession.
You’ve probably heard it one time or another. Monetize this … Monetize that … Monetize everything. In this cutthroat world of Internet businesses, web applications, new media networks and the like, everyone wants a cut of the pie–whether it’s in the form of advertising, subscriptions, commissions, or even sponsorships.
A recent 
I love Gmail. I use it everyday. It’s the first thing I open whenever I launch my browser. I actually have several Gmail inboxes open at any single time–this includes my main “gmail.com” email and another Gmail for domains account. I also use the mobile Gmail application on my Nokia Series-60 phone. What I like is its seamless integration with Gmail features, like labels, seach functionality and address book. And since it’s a native Symbian application (and not Java), it’s fast.
New media mavens would have you believe in the concept of the Long Tail as a religion. It’s no longer just the big things that matter. But those little things on the fringes, when aggregated, add up to a big thing. A lot of online entrepreneurs subscribe to this ideal. You set up several small sites or services, and try to market and monetize each of these. This is one model in network blogging. You try to run blogs in different niches.
When I was working in the corporate world, I had to scold myself whenever I had the urge to blog during office hours. Sure, writing was my passion and my hobby. But of course, doing this on company time would be tantamount to stealing! That was until I found myself shifting jobs, in which my new job actually involved blogging. Not only was I authorized to blog on the job, but it was also my main responsibility to get the word about the company’s products and services through blogging and word of mouth.
In the realm of new media, development is everywhere. It’s so fast paced that what’s hot right now may not exactly be the in thing after two weeks. There are trends, there are fads, and then there are those projects that go on a winning streak. These not only make their millions overnight. They also tend to be sticky. They tend to gain mindshare and these brands stick to our consciousness as if we’re born with them.
