When is the best time to start an internet business? Lots of people would think that starting an internet business in a financial downturn or a recession is a bad idea. Bad economic times may have you worried and fearful to launch an internet business on your own, but you may not know that many top corporations got their start right in the middle of a recession.
Sixteen out of the thirty corporations that make up the current DOW Jones Industrial average (corporations that have been around a long time), are ones that started during a recession. Walt Disney Corporation began during the recession of 1923 to 1924. Here are seven reasons why a recession is a perfect time to launch an internet business.
INTERNET BUSINESS HAS MINIMAL STARTUP COSTS:
Most ‘brick and mortar’ businesses require a store front or building to be purchased, inventory needs to be bought right away, production costs to launch a product, etc. With internet business and information products, you can sit down and create an information product such as an e-book for free with no production costs.
In a time of recession, people’s budgets are shrinking, people are getting pay cuts, people are getting laid off, and there is not enough credit out there available any more. Starting any business takes money, but what if you don’t have much money to start? Because you can get started for next to nothing, internet business is the best kind of business in this case.
LAUNCH AND PROVE YOUR IDEA FAST:
Rather than waiting two or plus years, which is a huge gamble, with internet business you can get something started very quickly and will know right away if it’s a good idea or not. You’ll know right away and you can move on to the next idea with minimum time and financial input involved in it if your idea isn’t successful. Times of uncertainty are times for opportunity, so you are able to prove your idea in a timely manner.
Getting your products to the market and getting your business up and going right away is very important. Most regular type businesses operate for two years or more before they actually make a profit due to startup costs and production costs of products. You make a huge investment in the beginning hoping that someday it will pay off and you will actually have a profit.
LOW COST, HIGH IMPACT MARKETING:
Marketing is the key to business, and you want to be a good marketer putting adequate time and money into marketing. Many other businesses need to use mail or billboards, however with internet marketing, people find you through all the free content you publish (podcasts, videos, blogs, etc.).
When it comes to marketing, the key to surviving in a recession is getting the best bang for your buck. Internet marketing is extremely easy to track, you can track the amount of clicks coming in, track when someone hits a landing page, track where they came from, and even track the conversion rates for people that sign up for your product or who buy from you. This helps you to be laser precise and cost effective.
COMPETITION IS ALWAYS WEAKER IN A RECESSION:
These business thrived and were successful because they stepped it up and did more marketing. Because internet business is so cost effective, you can pull ahead of the competition and be successful.
Most companies in the midst of a recession are acting out of fear, and tend to do foolish things business wise as a reaction to that fear. They start to cut their marketing budgets, and shorten up where their money is going. Cutting back on marketing in a recession is certain death to your business, remember the big companies we mentioned at the beginning of this article?
YOU DON’T HAVE TO ASK YOUR FAMILY AND FRIENDS TO INVEST:
Internet business is great because it’s trim and very slim when it comes to initial investment, so it helps you to steer clear of the awkwardness of asking for family and friends to invest. Startup is so easy, and cost is minimal.
This does get tricky, asking your family and friends to invest in something you don’t know the outcome of whether it will be successful or not. MLM’s (Multi-Level Marketing) schemes get a bad rap because they are based on selling to those who are closest to and getting them to buy into your business.
YOU ‘VE JUST LOST YOUR JOB OR TAKEN A PAY CUT:
Statistics say that 1 in 12 Americans are currently unemployed, and 80% of jobs will hire either internally or someone they know, it’s all through networking. You also are competing with people that may be more qualified than you are, so you will have a much better chance of succeeding by going with internet business than playing the odds of getting a regular job.
Maybe you’ve just lost your job or take a big cut in your pay and your bills are not matching up. Internet business is a great way to go because for little money and very little time you can prove an idea out, you don’t have to wait a year or more to get the income you need now. In this economic time, it’s definitely easier to start a business than to go out and try to find a regular job.
TAKE CONTROL OF YOUR LIFE AND FINANCES:
Rather than waiting two or plus years, which is a huge gamble, with internet business you can get something started very quickly and will know right away if it’s a good idea or not. Internet business is a great way to go because for little money and very little time you can prove an idea out, you don’t have to wait a year or more to get the income you need now. At a time when people are losing their jobs and getting pay cuts, internet business success is actually increasing.
Bad economic times may have you worried and fearful to launch an internet business on your own, but you may not know that many top corporations got their start right in the middle of a recession.
Internet business is the best kind of business in this case because you can get started for next to nothing.
The society we live in and all the systems we depend on financially to keep things working are starting to break down in this difficult economic time. The breakdown of the housing market, banks, and other financial systems we depend on is impacting people’s lives in huge ways. At a time when people are losing their jobs and getting pay cuts, internet business success is actually increasing.
Because you are in control over your own business, any changes that may happen you can respond to in a moment’s notice to reverse any negative effects that might occur. Internet business gives you the means to take control of your life and finances.