Benefits of a recession for a business!

mickey2008

Hi,

I am currently in business for myself and I am finding that all of this talk about the current recession is affecting me and my business. In choosing to have an optimistic and positive frame of mind, I wish to explore the possible benefits of this economic climate has on a business....I will start with a few....

1. Lower prices for commercial space to rent and to buy

2. Opportunity to become more creative in doing business

3. Forces people to change ie. become more customer focused

4. Lower mortgage rates

5. Lower priced vehicles

6. Opportunity to upskill and retrain

these are just a few I thought of...I would love to hear some more...

Thanks

wixfjord

Now this is more like it, a bit of optimism.
More customer focused companies, lower rent etc, and a weeeding out of all those cowboys and badly run businesses many of whom flourished during the Tiger years are just a few. Of course there are many negatives, but I personally believe a well run business, providing quality at a fair price and most important of all a business who recognises its customers are what keeps it afloat will survive.

Optimism is one of the main traits of an entrepreneur

Zascar

Good work OP! I wrote a blog post a while back with a similar theme, take a look: http://www.colinfitz.com/why-the-recession-isn%E2%80%99t-such-a-bad-thing-for-everyone

Sonnenblumen

Yeah all this talk is like thinking what to do with an oil slick, try go around it andf hope it disappears or tackle it and do something about it?

Anyways,on the + side:
- we're expanding
- we're taking on more risk
- we're probably fighting harder to compete more smartly
- we're focused on the value approach
- we've adjusted our product and services offerings to compete in more segments and
- we're investing in brand development
- avoid using negative words and expressions, it's tough but fun and it's like cycling in a new gear!!

2009 might be a tough year but it's 2010 that will certainly separate the sheaf from the wheat!!

Bandara

I have to confess to having a lot of mixed feelings at all this talk about us being in the depths of 'recession'.

Its more like 'reality' than recession. For over ten years Irish people have all been spending money at a ridiculous level, fancy cars, multiple fancy holidays a year, maxed out credit cards without a moments thought, loans taken out to repay the credit cards so they could go maxed them out again. Eating out several times a week, older teenagers getting so much pocket money that they never even look for the part time jobs any more.

Now we are getting a dose of realism and the inital blood loss of excess jobs, businesses and too high priced industries (housing market etc) is very necessary and a good thing imo.

I'd agree fully with Sonnenblumen, good companies are working bloody hard right now to sharpen up, refocus and attack their respective markets. I personally am really feeling quite embarrassed at my own easy going approach over the past ten years when the money was rolling in. I think everyone was guility of complacency and forgetting what hard work it took us to get our businesses up and running. I'm actually really getting a huge buzz out of fighting hard again, its exhilarating.

In a year or two Ireland will once more be a streamlined aggressive country just like it was years ago and we'll be back to punching above our weight on the world stage again. Yes there will be a lot of tough choices and casualties but its necessary to keep us all moving forward imo.

conolan

You know you're old when you can say "I remember when we had a real recession". In the 80s recession differences were
1. The rest of the world wasn't in the same boat.
2. It was entirely of our own making
3. We went downhill more slowly

CallieO

Excellent attitude!!

the biggest issue with the recession this time round is the ease of access to information. We are bombarded with financial updates every minute, blogs, tweets, emails all compounding the sense of panic.

If it means we work smarter - then so be it. The days of flogging an acre off the bottom field are gone - and tbh a false support to the economy.

My response to the recession?

Do you keep hearing and reading about Web 2.0 but don't really understand what it is? That social networks are changing the way people meet and do business together, but you don't know how to start making it work for you? Business Online is an introductory guide to making the most of the internet and the latest Web 2.0 applications. It begins by telling you how to create a powerful website for next to nothing, then how to use social computing applications to generate new leads for your business. Finally, it shows how to make the most of the internet as a collaborative working tool, allowing you to share files with your partners and / or customers. Business Online is perfect for any small business owner, or part-time business owner operating on a limited budget but who wants to make the most of powerful resources that the internet has to offer. But this is not just a guide for the internet based business - it describes how to use the internet as a working tool to support any business activity.

http://www.lulu.com/content/6141415

rediguana

Hey.

These are some points I mentioned in an article I wrote recently for www.weeklycolumns.ie, in association with Ulster Bank.


The Time is Now: - Benefits of Starting Up During a Downturn.

1. First-Mover Advantage: If you have a business idea that you believe in – recession or boom - there is no time for procrastination. Waiting for “the perfect time” increases the likelihood that someone will beat you to it, and there are significant advantages to being first!

2. Cost Consciousness: Firms born of downturns tend to pare costs ruthlessly and appreciate every euro that their business generates. This attention to genuine value puts these organisations in an excellent position for when the economy recovers.

3. Payroll Savings: It’s easier and cheaper to find talented staff. Upward pressure on wages is relieved and there is good availability of graduates, skilled technicians and administration people. The ample labour supply means that employing costly recruitment consultants is unnecessary.

4. Cheaper Space: Commercial land / office / manufacturing space is more affordable. There is more scope for negotiating lease agreements. When the recovery comes, these prices will increase again, meaning that there are bargains to be had for those who can buy now when demand is slack.

5. Procurement Bargains: If you need to kit out an office or a factory with equipment, now is the time to approach vendors and negotiate some excellent discounts and deals for your business. Suppliers will be happy just to get cash coming in and stock going out and so will be offering plenty of reductions, incentives and sweeteners!

6. Dislocation Opportunities: During the tumultuous 1940s, economist Joseph Schumpeter famously referred to the “perennial gale of creative destruction” at work in the world of business. As some existing firms go under and cease trading, there is the chance for new enterprises to emerge and supply those markets in a more effective way.

7. Research Your Idea: Before actually starting a business, there is a lot of groundwork that needs to be put in – researching markets, designing products and services, raising finance. Depending on the sector and the scale of the plan, these preparatory activities may take a year or longer. A recession can be an ideal time to put in this pre-start-up work. The finely-tuned business idea can then be brought to fruition a year or two hence when economic activity is waxing again.

8. Lower Opportunity Cost: In boom times, you may have had a high-paying salary, paid holidays and health insurance. Striking out on your own then might have seemed a madcap risk. But now some workers have seen their wage and benefits reined in or, worse, they’ve been made redundant! For these people, the opportunity cost of taking the entrepreneurial plunge is much reduced.

9. Advertising / PR Plusses: Not only will media rates be cheaper, but the lack of advertising activity means that your own advertisement gets greater visibility. Press Releases for new products, grand openings etc, may get more attention from “good news”-starved media.

10. Blue-Chip Precedents: History is on your side - such titanic corporations as McDonalds, Disney and Microsoft started out in recessions!