Why "recession" is effective for startups starting a new company?

Sub primeIt has arrived at a level that can be realized on the skin even by people who had thought that the influence of the global economic recession, which originated from the beginning, was "not related to ourselves" gradually, but rather, It seems that it is becoming a strong wind for companies in the so-called start-up stage that they are going to start up in the future as the wind is blowing down. What on earth is it in the state that "rather it is a chance now?"

Anxious analysis is from the following.
Howard's Startup Game >> Why is Economic Recession Good for Startups

■ Competitors will weaken


Many major companies are trying to rebuild their management by cutting secondary products and services, making efforts to dismiss employees. As a result, new products and new services are not readily available. In other words, it is a good opportunity to sneak into these markets.

■ Human resources are cheap


Because there are a lot of unemployed people, we think that talented people such as excellent school students and excellent manager level of large companies will work even in a small company with a small salary. This is rare condition in the past. In addition, office rental, servers, food, etc. will become cheaper in the future.

■ Modify business plan


In recession, so-called venture capital will refrain from investing in terrible business plans, especially those without an obvious revenue model, cash flow not sound. This continues to be revised and revised business plan, but nonetheless venture capital will be cold. But this also means that you can survive in a real business environment.

■ Increase fair chance


Up to nine of the 10 startup companies will collapse within 12 months. It is true that small companies are carrying high risk of failure. However, as far as the recent disaster such as Lehman Brothers, Merrill Lynch, major automobile manufacturers, etc., we see that there is no safe company anywhere in this world. Also, the size of the company seems to have nothing to do with safety. In other words, even small companies have chances.

■ Do not waste money


The author seems to have friends who earn 10,000 dollars in online business, 90% of which are gone by the salary of senior managers, and once a month coffee meeting (in other words, a conference that does not matter) It seems that it is the job of that senior manager. It is a merit of the economic recession that not using such unnecessary money, or being unable to use unnecessary money.