Starting a business in a recession

There are several significant advantages to establishing a new business in a recession

22 March 2013

Although current economic conditions are extremely challenging, there are still many opportunities available. This doesn’t just apply to accountants but to anyone willing to have a go. We live in times of great uncertainty, and a look at predictions from the past indicates just how difficult it is to foresee the future. Levels of debt, both individual and on a government level, are at an all-time high and these have proved to be a stubborn obstacle in the path of economic recovery.

In the face of all this, is there any sense in trying to start a new business? Well, there are several significant advantages to establishing a new business in a recession, particularly in relation to the start-up costs. For instance, finding the right premises, a major cost component of any business start-up, has never been easier. There is a huge over-supply of suitable premises available and the rents, in real terms, have never been lower. It is definitely a tenants’ market, with would-be entrepreneurs able to negotiate from a position of strength. In times of strong economic growth, landlords held the advantage and were able to insist on long leases with upward-only rent reviews. This is no longer the case and suitable premises can be found at very modest rents with ample opportunity to exit the lease should the need arise.

All of the services needed to get a new business off the ground such as telecommunications, corporate identity and branding, stationery etc. are now available much more cheaply than was the case a few years ago, as suppliers vie for custom. There is a readily available pool of talented labour and it is easier to recruit and retain the right staff in the current situation. Fixtures and equipment can be obtained at a fraction of previous prices, especially from liquidation auctions.

The key ingredient to any successful new business venture is a realistic, well thought-out and properly researched business plan. Even the banks, though notably more cautious than in the past, do have funds available and are willing to support a well presented business plan.

Before approaching the bank, however, it is a good idea to obtain professional advice on how best to structure your ideas, how to stress test the proposed venture and, importantly, how to co-ordinate and present your ideas in a manner that will persuade the banks to support your idea. We offer a full business planning service and will assist at every stage of the process.

Contact us.

We don’t charge for an initial consultation so, if you would like to have a chat about starting your own business, just get in touch!

Call Tom on 087 12 16 345

To email him you can use our online contact form - or just send an email tcaccounts@eircom.net

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