Better to Start a B2B Company in a Recession

Sometimes, the best way to save money is to spend money.

You invest in education to improve your long-term earning potential. You invest in software to make your employees more efficient.

This is a basic concept that can get lost in the oh-fuck-we're-in-a-real-recession panic that is striking boardrooms and kitchen table conversations around the world.

But companies tend to remember it better than individual consumers. Companies tighten their belts more rationally. Consumers will blindly slash costs across the board. They hibernate and are unable to think about the long term benefits which can accrue from short term investments.

What does this mean to entrepreneurs? I think it's better to start a B2B business than a B2C.

Bottom Line: All else being equal (and this is a huge qualifier), if I were starting a new company in a recession or depression period, I'd prefer to sell to companies over consumers.

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