How Recession is Actually Helping Small Businesses

It's hard to imagine today's current economic recession actually helping with anything, but recession is an important part of the business cycle for a reason. First and foremost, it helps weed out weaker businesses without the resources to outlast what's guaranteed to be a temporary condition. Despite that fact, however, recession serves another valuable purpose; it can give small businesses the impetus they need to succeed!

Wait. If industry giants like Circuit City are buckling under the pressure of recession, how can it help small business with infinitely fewer resources? The fact that small businesses have fewer resources is exactly what makes them prime targets to outlast a recession. Fewer resources equals smaller overhead. A business being run from a home has fewer expenses; you're not paying for office rental, electricity, multiple phone lines, and any of the other myriad expenses that go hand in hand with running a large facility.

Because most small businesses don't stock huge amounts of inventory, they're less likely to be left hanging with the expense for inventory that simply didn't sell. They also generally employ fewer employees and have the capability to function with even less, helping them ride out the recession and get things back on stable ground.

Perhaps most importantly, because small businesses tend to operate with less overhead and a smaller staff they can often offer their customers less expensive, more personalized goods and services. For example, a smaller used auto retailer might be able to "take orders" from their customers when they go to auction rather than leaving them coming back time and time again hoping they'll have what they're looking for. And they might be able to offer their financially pressed customers a "discount" for their services that will earn them a customer for life when things go back to normal.

The bottom line is, with the recession in full swing consumers are looking for a better way to buy their goods and services-and they're not afraid to take a chance on a smaller business if it will give them what they want at a price that they can afford. Are you going to let this opportunity pass you by?