With Australia potentially heading into recession and the economy slowly plummeting, the best time for a start-up is now. Some of the best companies today such as: Microsoft, HP and Apple started off in the heights of a bad economy. Recession is a problem and creates larger issues for consumers and businesses for that time period. The best way to be a successful entrepreneur during a bad economy is to be innovative. A lot of people are looking for solutions to their problems and the best way is to present them with a solution.
Here are the top five reasons why a bad economy is a fertile ground that will make your business thrive which later on will flourish and bloom.
- Highly qualified staff will be available to hire where it was difficult before. The advantage to recession in regards of employment is their income will be smaller and more affordable.
- By setting prices lower when your business finally takes off, sales of your products will make higher profit. When creating a marketing strategy, it is best to think of innovative products. It will be profitable to supply a product that will be good during recession time as well as when the economy is stable.
- Large companies earn good profit when the economy is stable but competition will be deadly for small startups. Although, when large businesses file for bankruptcy during recession, competition becomes narrow and startups have a fair chance of succeeding.
- The way to truly flourish as a startup is when the business can be put through a difficult time and will come out even stronger later on. If you can grow your startup when consumer and business confidence is low, your business will be bulletproof when the economy improves
- Becoming a business owner benefits you to a variety of tax benefits that are not available to your employees. In Australia, the budget for 2015 shows your tax rate will be cut to 28.5 percent which is a reduction of 1.5 percent. This will benefit the term of recession as even though the tax cut could budget to over a million dollars, individuals will still be able to pay it off slowly at a discounted rate.
Recession is a problem and creates larger issues for consumers and businesses. But if handled correctly you can be prosperous amidst all the economic issues. The best way to be a successful entrepreneur during a bad economy is think innovation.