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You can also argue that a recession is a better time than usual to start a company. Your opportunity cost is a little bit less (due to the job market), custome
by peterwoerner 6y ago
You can also argue that a recession is a better time than usual to start a company. Your opportunity cost is a little bit less (due to the job market), customers are a looking to save money are, perhaps, more willing to take on risk to reduce expenses, and finally there is more likely to be talent available at a cost you can pay due to layoffs and a slowdown in hiring among established businesses. Anecdotally there are lots of companies which got started in a recession, FedEx + the tech ones written in a sister comment.
- rixrax 6y agoTotally agree. And many bigger projects get canned or put on hold. Potentially making up room for smaller projects to implement a more compact product from a start up ( to get some quick wins ).
- papito 6y agoThis is why investing in small cap stocks/funds always pays off in a recession. They take off like wildfire during the recovery.
- bnonhacker 6y agoYES. This pertains to the market conditions and even if it's a tiny company, it's still swimming in a pond affected by various macro-conditions.