A Bad Market Doesn't Kill Startups — That Belief Does. Here's How to Launch a Startup in Any Economy.
If you can prove your idea works when times are tough, you'll be ready to scale when the tide inevitably turns.
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Key Takeaways
- Startups can succeed in economic downturns by solving urgent problems, as past successes like Airbnb and Uber demonstrate.
- Internal issues, rather than economic conditions, are often the true challenges facing startups in tough economies.
- Launching during a recession can provide unique advantages, such as less market clutter and cheaper advertising, potentially leading to a longer product lifespan.
“I’ll launch when the timing is better.”
“It’s just not the right economy for something new.”
“What if no one’s spending money right now?”
If you’ve ever thought this — or heard it from others — you’re not alone. In times of economic uncertainty, hesitation feels logical. It’s wise to be cautious, and besides, you want to give your startup the best possible chance of success. Waiting just makes sense.
Except that all of that is — excuse my language — total hooey.
If you’re building something people truly need, the timing doesn’t have to be perfect. Great startups don’t take off because the economy is booming — they take off because they solve real problems. And yes, that can happen even in a downturn. Here’s why.
When being small is a plus
I get it — launching in a time of economic turmoil seems like an obviously bad idea. But here’s the thing: When founders say they’re holding off because “no one’s spending right now,” they’re thinking like established companies, not startups.
The reality is that in the earliest stages, you’re not trying to win over the whole market. You’re just trying to find a few people — your first 10, 50, maybe 100 users — who have a specific, urgent problem and are actively looking for a solution.
In that context, macroeconomic trends don’t matter nearly as much as you might think. Recessions don’t eliminate pain points. In fact, they often magnify them. If your product solves something real, there will always be someone willing to pay for it. Plenty of now-household names started during downturns: Airbnb during the 2008 crash, Uber in 2009 and WhatsApp the same year. These companies didn’t succeed despite the recession — they succeeded because they solved pressing problems, and the downturn made people more open to new, cost-effective solutions.