Starting Your Own Business — Recession or Not

Do you have a great business idea, but you’re not sure how to move forward due to economic uncertainty? It’s not easy, but it’s possible to start a business during a down economy if you have the right formula. The key to a successful startup is having a great business idea that serves a meaningful purpose or solves a problem.

Some of the best and brightest business leaders launched their plans in the middle of an economic downturn. For example, some companies that took a chance and opened shop during the Great Recession of 2008 include Groupon^®, Slack, Uber, Venmo and WhatsApp. If you’re already in business and looking for ways to adapt to the current business landscape, read about reinventing your business to survive the pandemic.
 

Find Your Window of Opportunity

Shifting consumer behaviors and trends can make or break your success in business. If you have a business idea that could thrive under current conditions and remain relevant in the future, this may be a good time to get your business off the ground. Here are four reasons why the conditions may be right to start your own business:

1. Innovation is happening everywhere. This is not business as usual, and people are more willing to think outside the box. If you have an innovative product or service that makes life easier during uncertain times — and a way to bring your idea to market — you may earn an instant customer base.
2. Costs may be lower than usual. You may be able to buy supplies and even rent an office space at a reduced price, depending on the type of materials and space needed. If suppliers and vendors are eager for business, you might be able to negotiate attractive terms during these conditions.
3. You may have less competition. The companies you may be competing against for business could be closing up shop. Or perhaps they’ve cut back on their expenses and you can provide a product or service that they no longer do.
4. It’s a good time to build loyalty. By making sacrifices and going above and beyond to really take care of your customers during uncertain times, you can earn goodwill and word-of-mouth referrals from a loyal customer base.
    

Helping You Make It Happen

Before committing resources to your business idea, spend some time writing a detailed business plan. This will help you map out your goals and identify potential challenges and opportunities. You’ll need to estimate the startup and operating costs for running your business as well as cash flow and revenue targets needed to make it work.

When you’re ready to hit the ground running, check out Amegy Bank’s suite of business services to help you run your business smoothly. Explore SBA Loans[cite::2400::cite] and other loan options including Business Access Loans[cite::2400::cite] designed for small businesses with a simple ownership structure. Connect with a business banker at Amegy Bank to learn about opportunities for financing your small business.

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