Why Launch A New Business In A Recession? Why Not?

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Starting a business during a downturn can be nerve-wracking, yet some of the most famous brands were launched during an economic crisis, including Airbnb, Uber, Burger King and Hewlett-Packard.

Although the venture was challenged by a lack of cash flow and resources, it ultimately developed an enduring business model. “We don’t hold stock, we sell before we buy, and we pay before we get paid,” says Davies. “We also chose to work with suppliers of products from several different breweries, allowing us to offer a wider range to global customers while keeping the logistics to one supplier.”

“The recession forced us to develop a very slick and efficient operation, which we still follow today,” says Davies. “For that reason, I would absolutely do it again. Questions were asked about our decision to start trading during a recession, but in my view, it was the best time to start.”Industries. Zound transformed the famous Jim Marshall rock’n’roll amps - used by Jimi Hendrix at Woodstock - into a range of home speakers and headphones sold in 130 countries.

“It’s easy to think of doom and gloom when the economy plummets,” he says. “What I saw was a huge opportunity to create a lean, finely-tuned business and position it for long-term success.” With a recession looking increasingly likely, Bergström’s advice to other entrepreneurs considering starting up is to retain a positive mental attitude and to focus on working with facts. “So many people consider a recession a hellish landscape,” he says. “It is an opportunity, and you must truly believe that to succeed.”

 

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