Aspiring Entrepreneurs: There is no better time to start a company!Paul Graham writes:
The opportunity cost has decreased as many high paying jobs have disappeared and employment opportunities in general have lessened. If you have a job, companies will have less room to give generous bonuses and/or raises.
It’s going to be harder for entrepreneurs to raise money, but competitive pressures decrease dramatically in downturns giving you more chances to establish yourself as the leader in your field and more time to do so. [...]
If you have been thinking of creating a company, now is the time to make the plunge!
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.
As those examples suggest, a recession may not be such a bad time to start a startup. I'm not claiming it's a particularly good time either. The truth is more boring: the state of the economy doesn't matter much either way.
People have been asking me what the downturn means for my plans. The answer is "little". I want to be very capital efficient, and if the investment climate is indeed as bad as the doomsters say, there will just be fewer of us, working more slowly on fewer features. The product might turn out even better.