Recession! Abandon Your Startup/Plan?

I received a nice email from Brian H. recently with a link to an article in the Coloradoan concerning startups and the recession. The article is generally positive and full of ‘experts’ saying startups can thrive in lean times.

From the piece by Cari Merrill,

“Economic conditions are the important part of entrepreneurial endeavors. As an entrepreneur, you need to be thinking about all sources of capital. I believe human capital is way more important to a startup endeavor than financial capital,” said Paul Hudnut, co-director of CSU’s Global Innovation Center for Energy, Health and Environment and course instructor. Much of the success in a startup company is with people who are motivated to see the project through.

I really agree with the point above. Over the past 3 months I have talked to many people about working on my startup and I find very few with the motivational level necessary –regardless of money/funding etc.

The article talks about Colorado specific trends such as biotech and life sciences funding and this is an important point — what industry you are in and where you are physically located will determine what the recession really means to your startup. My free consumer website business (launching in a month) should not be affected by recession. People are not going to abandon the internet and especially not free sites that provide some value/service.

Moreover, the location issue may determine many things — what kind of talent is around, whether people/companies are moving in or out. In a recession, places rich in human capital may present great opportunities to get cheap talent.

Any thoughts?

One thought on “Recession! Abandon Your Startup/Plan?

  1. entrepreneursjournal

    Hey man,

    I just started my own blog in wordpress and I came across yours. I like the general theme of your site. I’m 24, and am starting my own business now. I started a few side ventures in college to make extra $ but they didn’t amount to a ”business” by any means. Now I have some real world sales experience and a great idea I know I can blow up. What is your idea? I haven’t disclosed my idea on my blog either. Lemme know.

    Entrepreneursjournal
    http://entrepreneursjournal.wordpress.com

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s