Starting a business during a recession or bear market is a risk you should take

2008 was the worst recession I have ever seen in Arizona.

And of course, I started my garage door business months before.

Already in debt, we did everything we could to survive: from managing jobs, to fixing trucks, to dealing with angry customers, and thank goodness we succeeded!

So with a recession looming, you really need to understand what you're getting yourself into.

What are your chances? How can you actually win and gain market share over your competitors?

Well, let me share with you a study that I recently discovered. When I read it, I was overwhelmed...

It's from the Kauffman Foundation, and here's what they found during their research:

"...more than half of the companies on the 2009 Fortune 500 list were launched during a recession or bear market, as well as nearly half of the companies on the 2008 Inc. list of American companies to fastest growing." < /p>

Was it a fluke? No. They also analyzed companies founded three decades ago:

"In 1985, of the 372 companies [Inc. 500] that reported a founding date, 26% were founded during a recession and 41% during a bear market. Thus, two-thirds of companies started during a recession or bear market. In 2008, each of the top 500 companies listed a founding date: only 17% were founded during a recession, while 31% started in the middle of a bear market."< /p>

In other words, the odds aren't as horrible as you think. The question is, how do you make it work?

1. Ignore opponents (including the one in your head).

Over the years, I've heard it all: "It's tax season. Christmas is coming. The depression is here. We're entering a recession." There are also many people who say, "I can't make money from my market".

Look, I'm not saying they're all wrong. But I made money in a recession. I earned money during COVID-19. I have made money in good and bad economies.

Accept challenges, but don't let naysayers, especially your inner critic, keep you from working hard for your business.

2. When times get tough, tough becomes marketing.

Marketing is what brings customers to your business. You have to keep marketing and selling no matter what. Yet I've seen entrepreneurs cut marketing spend in tough times - it's like shooting yourself in the foot just when you start bleeding! In fact, if you can outperform your competition while they're suffering and cut costs, you'll likely earn a bigger slice of the pie.

If your marketing is too expensive, switch to a cheaper channel or strategy. There are also tons of free options, whether it's social media or SEO.

During the 2008 recession, one of my favorite channels was Craigslist. Some people might hate Craiglist, but I definitely got my share of good leads there.

To choose the right marketing platform, find out where your customers hang out online and market to them directly. This is also the case offline.

3. Find "recession-proof" customers.

In No B.S. Marketing To The Affluent, Dan Kennedy explains how he goes to yacht clubs and private airports and advertises to wealthy people, where the average ticket is 100 times higher.