It Can Be a Great Time to Start a Company

We recently read a great article by Jim Verdonik that was worth sharing here:

Downturns always stimulate new companies, and tough times historically have been better for start up companies than most people think.

Why?

* First, necessity is the mother of invention. As big companies cut their work forces, laid-off workers focus on starting over. Some inevitably find it attractive to be their own boss and have more control over their lives. That often leads to innovative ideas they wouldn’t otherwise have pursued.

* Second, opportunity cost is lower in downturns. In good times, company founders give up more cash flow than in economic downturns. They also give up perceived job security. As people watch their co-workers being fired, they often conclude that job security is a myth. So why not swing for the fences by starting a company…

The bottom line is that entrepreneurs always face tough struggles. Think twice before you quit your day job to start a company. However, don’t tell your neighbor he’s crazy when you hear he’s starting a company in this recession. Your neighbor may just be your next boss.

You can see the full article by clicking here.

At Path Insight, we could not agree with this article more and we love to work with those starting a company.  The passion when doing what you love and working for yourself can be contagious and we love the energy in these projects.  Our consulting arm, Path Insight Consulting and its partners provide the complete solution for start-up companies and are ready to assist you.

We look forward to hearing your thoughts on starting a business in these interesting economic times.

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