So says Sir Richard Branson in his interview with The Times. Recessions are a great time to launch a new business as the barriers to entry are low. This time around he feels that there will be many new businesses that will emerge in the banking and finance sectors as the recession has absolutely devastated these industries and caused some traditional business models to fail.
It is to be noted that Sir Richard has his hands in businesses of all kinds and is looking to expand his Virgin empire into banking. So if you are thinking of taking Sir Richard’s advice and launching a new bank of financial business, you will have him as a competitor.
Mr Branson also advises businesses to explore all possible options before deciding to cut workforce. Businesses that survive and do well through recessions and grow look at focusing on quality and being creative and lay offs tend to have the opposite effect. Try to diversify your product or service by adding new capability or two. My recommendation to the business owners is that when the volumes are down due to factors not in your control, such as a downturn in the economy, you should look at doing more with less by possibly adding more value to your product (for which you can charge more) to improve your gross margins. That way you can support your business in the short term and as the economy recovers, you will be able to grow faster with your added capabilities.
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