The answer to that question is Yes, No and Maybe.
First lets look at the Pros:
ü Cheap Labor- with the employment creeping up towards 10 percent, they can finding all kinds of qualified employees ready, willing and able to work for a paycheck.
ü Cheap Rent and materials – so many businesses shuttering and fewer willing to hang their shingle, landlords are making deals and offering build out incentives.
ü Fewer and weaker competitors – not just for market share and creating an customer base, but with fewer competitors, everything you do from a Grand Opening to special events will grab the spotlight.
ü Cheaper advertising- and due to fewer players on the, advertising rates have softened so your marketing and advertising dollar will go further and buy more.
Even with these factors in your favor, starting a business in a recession can be a difficult prospect. Think about how that marketplace had changed and how your business can respond the needs of your customers in the current economic climate. Since people become more fiscally conservative so you may find your niche by becoming the bargain alternative. Whatever your strategy, stay alert to changing needs and keep your business flexible to take advantage of current trends.
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