Since 2007/08, the world has been plunged into another Global Recession – this one made all the more harrowing by the fact that, in the 21st Century, we have access to the internet, and so can really see what the ‘Global’ means in a Global Recession.
With all this doom and gloom still being reported – now 5 years since the Northern Rock disaster – it is easy to think that it’s simply not worth trying until the economy picks up a little.
But that’s not necessarily the case! We’ve already covered how some buinesses thrive even in adverse conditions, and help out the economy to boot. And studies by organisations like and Social Enterprise UK show that SMEs usually have the flexibility and resilience to withstand the knocks of recession better than some larger companies.
But what does that mean for you? It’s all well and good us showing you big examples like the Eden Project, and quoting stats from other organisations. But what can you, as a budding entrepreneur, do to help your business weather the storm? Of course recessions are scary, and there are those who suffer majorly because of them. But here are just 3 reasons why this isn’t the case for everyone:
1. You can make use of freed spaces
A group of artists in Chester recently took over a boarded up shop in their town centre and used it as a showroom.
With the headlines flooded with photos of closed high streets, here’s a little secret for you – the councils don’t actually want to see the shops close. Anything that they can do to generate footfall in a precinct they should jump at. If you need a space to display your ideas, or you need some publicity, have a talk with whoever runs your centre. You might be able to get a ‘pop-up’ shop for relatively cheap (or even, depending on the nature of your endeavour, for free!).
This doesn’t just apply to boarded up shopping centres – take the idea further and see what else you can get on the cheap.
2. Remember that the Economy can be seen as a closed system…
…which means that someone has to gain when people lose. Why shouldn’t that be you? Pop quiz: What do Disney, Hewlett-Packard, and Microsoft have in common? Answer: They were all founded during recessions. You don’t need to check the FTSE100 to know that these are three companies that don’t seem overly fazed by anything.
Sometimes when the chips are down, it’s worth remembering that even huge corporations all had to start somewhere. Recessions can bring out the best innovators and, as the cliché goes, necessity is the mother of invention.
One of the reasons for this is that during a recession prices for certain things tend to go down. This means that the money you have can go further, so take advantage of that. Now of course, being a recession, it might mean that you actually don’t have that much money. But that leads me nicely onto my final point.
3. Austerity shows you the things you really need
I graduated from University last summer, and without a grad scheme lined up I was somewhat unceremoniously ejected into the real world with nothing in the way of a career path laid out in front of me. I’m not overly worried – I have a roof over my head, and I can still eat, drink, and most importantly, check twitter. But my current lack of vast wealthy has made me reassess a lot of my expenditures.
One of the things I did was to check my bank account to see where my money was disappearing. I ended up saving nearly £40 a month by cancelling a number of direct debits – everything from gadget insurance that I didn’t need, to magazines I’d subscribed to as a student to “broaden my knowledge” but that really I’d rarely read. I didn’t even need to outright cancel everything; at a time where companies are desperate for customers in any way, in some instances I’ve managed to still have a lot of the same services, just a discounted rate.
Whether its on a personal level, or for your business, having a ‘spring clean’ of your finances might leave you surprised as to how much you can save
And if none of that convinces you that recessions aren’t always the end of the world, here’s a little fact for you: Did you know that over the course of the 20th Century, the Stock Market has gained on average 10% every year? This, in a century with 2 World Worlds, the Great Depression, and a great deal of political unrest across the world. In other words, despite all the knocks that the economy suffers, so far it’s still done pretty well. And that can be of some comfort to budding entrepreneurs.
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