Now is the Best Time to Start a Business
The U.S. economy has weathered 18 recessions spanning a total of 90 years since 1776, not including the current downturn. Each of those 18 prior recessions, some with descriptive names like "The Long Depression," which lasted a whopping 23 years from 1873 to 1896, had one thing in common.
[ More on CIO.com: Defying the Recession with Private Label Best Practices | Will Technology Fuel a Recession Comeback? ]
They ended. And so will this one.
Thirty years ago, when I was a research analyst at McGraw-Hill, I analyzed the 1979 Fortune 500 list to determine what percentage of those companies had incorporated during a recession. It was about 40 percent.
I decided to repeat the analysis with the 2008 Fortune 500 list, and here is what I discovered:
Among the companies on the 2008 Fortune 500 list, 35 percent incorporated into business during a recession -- a number that is remarkably similar to my 1979 analysis.
So I decided to go further.
I put under my economic microscope only the top 100 companies on the list. I was curious to learn if more or fewer than 35 percent of these largest companies had incorporated during a period of economic contraction.
Are you ready? Forty-six percent of the Fortune 100 incorporated during a downturn.
It gets better: 52 percent of the Fortune 50, 64 percent of the Fortune 25 and seven of the Fortune 10 all opened their doors while economic pain was all around them.
So what does this analysis mean? I have reached two conclusions:
First, if you are pining to start a company that you believe can scale to be one of the world's most dominant firms, you shouldn't be afraid to start it in a recession.
Second, watch your back. That 35 percent of the nation's 500 largest public companies launched during a period like the one we're in is stark evidence that-the recession notwithstanding-competitors are starting up all around you.
If you would like a slide recapping the data, just send me an e-mail.
» posted by ITworld staff
CIO
Sign up for ITworld's Daily newsletter
Follow ITworld on Twitter @IT_world
On Twitter now
startup
Powered by Twitter
jfruh
Apple syncing patent can't come soon enough
pasmith
New Twitter features borrow from 3rd party clients
Esther Schindler
Open Source Changes the Software Acquisition Process
mikelgan
How to set up continuous podcast play on the new iTunes
David Strom
Five important Windows 7 mobility features
sjvn
Guard your Wi-Fi for your own sake
Sandra Henry-Stocker
Grepping on Whole Words
Sidekick: The Good News & the Bad News
Either way you look at it Microsoft Data Center management did not follow standards or best practices in this failure. In which case it makes me wonder more about the outsourcing of corporate data much less personal data.
- mburton325
Join the conversation here
Quick, practical advice for IT pros. Made fresh daily.
Want to cash in on your IT savvy? Send your tip to tips@itworld.com. If we post it, we'll send you a $25 Amazon e-gift card.
