Here’s some inspiration for entrepreneurs who are second-guessing whether to start up their companies during a recession. These well-known companies are fine examples that there is hope and success if you believe in your product and have sound business practices.
Depressions, recessions, slumping economies. These economic conditions are nothing new. For ages, economic times have had an ebb and flow cycle. For those starting up a business, you can wait for the good times to come around, or you can do what these famous companies did and move full steam ahead despite an economic recession.
1. Microsoft Corp.
Not only was this computer technology conglomerate founded in tough economic times of 1975, its founder, Bill Gates, was a Harvard University dropout. But with all its adversities, it has flourished to a billion dollar company.
2. Hyatt Corp.
You might think it risky opening up upscale hotels during a time when people were less likely to travel and vacation. But that’s exactly what this hotel chain did from 1957 to 1958 during recessionary times under President Eisenhower.
3. Trader Joe’s.
When this famous grocery store opened its doors as Pronto Markets during the economic slump of 1958, it was an instant success. The Trader Joe name change in 1967 was the start of its new branding image of offering unique products under its own label.
4. General Electric.
GE is probably one of the first companies to make history by getting started during the economic recession of 1873. Although the tough economic times lasted for six years, the incandescent lightbulb created by Thomas Edison continues to shine 136 years later. Today, GE is the 10th largest company in the world.
5. Revlon Cosmetics.
Founded in 1932 deep in the years of the Great Depression, Charles and Joseph Revlon unveiled their new opaque nail enamel. Tapping all their resources, the brothers grew their company into a multimillion dollar enterprise within six years.
Other well-known companies that opened for business during recessions are: Fortune Magazine in 1930, Hewlett-Packard in 1939, Burger King in 1954, Sports Illustrated magazine in 1954, IHOP Restaurants in 1958, The Jim Henson Company in 1958, FedEx in 1973, CNN in 1980 and MTV in 1981.
These companies are proof that you can start a business and prosper during an economic recession. Do you think a recession is the best time to start a company? Leave a comment with your thoughts.
Matthew Toren
Great perspective guys. It is such a good reminder that with the right attitude we can all prosper, even in the most difficult times.
Great news,phew I just opened april 1st 2009 been in second month..holding my breath and now i can breathe again thanks brett
It is important to remember that we will come out of this recession, as we have time and time before. Those companies that can position themselves to succeed as the economy rebounds will be in a strong position to grow in the future. This post reminds us that every corporation got their start at some point, and now is as good a time as any. Thanks
Recession or no recession, the key is to have a business or service that people need to use at all times instead of something that is just a luxury.
Recession from one perspective is also opportunity. In the times of economic crunch, if entrepreneurs come out with alternate products that offer savings can become a hit. For example in current economic and energy crises in Pakistan (it’s where I am from), there’s a tremendous need for entrepreneurs from the technologically advanced world to come and invest in, from mega to micro energy production projects.
Recession can be considered as a great opportunity to start your own business as you can get talented people (who are jobless) very easily…