Garage Entrepreneurs

by Natalie Tags: Benefits of recession, business loan, business loans, financial decisions, lean budget, recession, recession and business, small businesses, starting a business during recession, Young Entrepreneur

Mar. 5^th 2009

As a young entrepreneur you should be looking at this recession as a once in a lifetime opportunity. Dan Schawbel over at the Personal Branding Blog said it perfectly: “A good attitude is better than a bad economy.”

Here’s what you can –and should- take advantage of during the recession:

Interest rates –Rates have dropped to record lows. If you have a business loan that fluctuates based on the prime interest rate you’ve probably noticed that your payments have been much lower recently. It’s true that it’s more difficult to get business loans in this economy but they are still out there if you look for them.

Tax breaks for small businesses –Hire a good accountant to do your business taxes. They pay for themselves by making you pay less tax. Small businesses usually benefit from extra tax breaks during a recession and your accountant will know what your business can take advantage of.

Affordable advertising rates –When times are tough, many businesses cut marketing and advertising costs first (which is a mistake by the way). Advertising rates go down because there is less demand and smaller businesses can afford space that is usually eaten up by bigger companies with bigger marketing budgets.

Get leaner –This is a wake-up call for you to make wiser financial decisions and trim out any excess spending by developing a lean budget for your business.

Get meaner – Once you’ve got leaner it’s time to get meaner. Have you ever been told that it’s wrong to kick someone when they’re down? This rule does not apply to business. It’s time to think of creative ways to deliver a TKO to your competitors while they’re hurting and increase your market share.

Cheap labour –You might get angry at me for saying this but labour is cheaper because a lot of people need to make money and wage expectations are not high right now. Whether you are looking to hire an employee or a freelancer, you can negotiate a wage that is within your budget. You should still be fair and not exploitative though.

Low lease prices –With real estate markets continuing to tumble, it’s a great time to get a location for your business. You can probably negotiate a lease at 50% off the price it would have been 2 years ago. If you find a great location, lock in the low price by signing the lease for a couple years. If you can actually afford to purchase a location (wish I was in your shoes) you will also save a ton of money.

I know a lot of people who are using “economic downtime” to have personal downtime, relax and take a break from long hours. I believe we all need a break once in awhile but it is during times like these when you have the opportunity to get ahead in leaps and bounds rather than step by step. Recessions don’t come around very often so take advantage and don’t let it pass you by.