While 2008 left me with a few screw-ups, 2009 already is turning out better. While it seems odd to start up again during a recession, nothing more can convince me its an horrible time to. If you look at the previous web 2.0 startups, such as Facebook, and Google(well..they got big during the recession, but started just before) they were building up while the rest of the world was hoarding their money from any outside influence. The mantra of “finding a need and filling it” stills stays true in this time. Their also some other good reasons to start.
1. Gas prices have dropped, big time- Gas may have prevented money for some low wage earners(say 12 bucks an hour or lower) from saving up for starting a small side business. If you still have your job, you might notice that you have some small cash flowing in. My savings are at least 20-30 dollars per fill up. Instead of buying t-bone steak, or eating out 2 times more a week, with this savings, you could place some of it aside to build up some capital.
2. Price of equipment purchases have dropped in some cases by 12%-40%- the price of an computer LCD 22 inch monitor use to run $279(US) on average. Now its less than $180(and that’s with the after Christmas sales, or really not on sale) for even an high end one. The netbook, if you can type on reduced sized keyboards(or plug in your own), you can have a laptop starting at $279. Intel has released a new CPU line, dropping prices pretty low in some cases(quad core processor for $180). Goods like desks and such really have stayed the same, but they weren’t that expensive to begin with(50 dollars buys you a basic top with 4 legs at ikea, and it looks quite nice). So deals are going to be plenty, and you won’t have to wait or try to fight with someone to get it, and still walk away getting something at a decent price, and quality.
3. Outsourced labor competition may go up- While some are laid off from work, some might resort to doing work on rent-a-coder and other outsourcing/temp. Agencies. Using outsourced workers(and they don’t have to be in a different country, they can be from here) and paying them 12-30 bucks an hour for 1-3 hours worth of work, will help you get the ball rolling in an area your struggling with. At the same time your putting food on the table for someone else. If you been recently laid off, this might be a great time to outsource your talents, you excel at. You can do do a few hours a day of outsourced work, while looking for a job. Who knows you might find the freelance gig enjoyable, and drop the job search.
There is only one bad thing about recessions. It requires a lot more pacence with customers. They might move a bit slower sometimes. They might research a product a bit more or give it 24 hours to think about it. But the needs and wants still remain. Figuring out a strategy to meet this slowdown, is a key. But, if you work with them, and give a good product or compelling reason, they will buy.
So Welcome to my relaunch(third time a charm!), and hopefully yours.
