business

They say it’s almost impossible to call the top of the business cycle or the bottom of a recession. Usually, it is six months after the fact until anyone knows for sure that a recession is occurring or that a recession has ended. This is because often recessions test themselves at the bottom and may go lower and it’s hard to say where the bottom is while you are in it.

Of course, the same thing goes for the top of the business cycle. No one knows for sure when we hit the apex because sometimes it goes down a little bit and then goes back up. So, when I was recently asked if it is time to start a business yet, and if this recession was over, I said it depends while addressing a college class of MBA students. The reality of the question is quite interesting; because it depends on which type of business they will be entering, and which industry.

Different industry sectors expand and contract at different times based on a multitude of variables. This is not a time that I would start an airline, an auto manufacturing company, a home residential construction company, or a bank that makes home loans, but I might start a service company of some type. I might start a wholesale company that sells to “first to recover” type of industry and to the public. So it really depends.

One thing I can tell you is there is a lot of money to be made when you buy everything at the lowest possible prices, right now everything is inexpensive, that means the equipment that will be needed to run a new business, the land or the buildings that the business will be located at, and even hiring top talent; it won’t get any cheaper than it is now and that’s always a consideration.

Any good stockbroker will tell you the way to make money in stocks is to “Buy low and sell high!” So I’d like you to consider that if you’re thinking about getting into a business. Now might actually be a very good choice and good timing. Please consider all this.