This is one of those must-read essays for entrepreneurs. Paul Graham recently wrote a piece called “Why to Start a Startup in a Bad Economy” that I found pretty damn inspiring. His opening lines:
The economic situation is apparently so grim that some experts fear we may be in for a stretch as bad as the mid seventies.
When Microsoft and Apple were founded.
If you’re feeling any doubt about these economic times, that opening ought to shine a ray of hope on you. A lot of companies have started in tough economic times.
His entry has sparked a lot of discussion too:
- From Don Dodge: great talent is more available, raising money is still possible (though a bit harder), and supplies are cheap.
- From Fabrice Grinda: there will be fewer competitors right now, decrease your burn rate, and be patient.
- From Robert Scoble: have a business model that helps customers save money, diversify your customer base, look for new distribution channels, etc.
All are good ideas and worth considering.
I’ve also got more tips on how your small business can save money during a recession. It’s totally possible, it just requires more operational & financial discipline. And take heart – you could be the next Microsoft (MSFT) or Apple (AAPL)!