As an Owner Of Industrial Properties, I think this is an ideal time to take that idea you have…and start your Company. Landlords are offering free rent, lower overall rents..and creative concessions.., I recall sitting in my office in 1987, (a Recession Year) when I received a call on one of my warehouses that was vacant here in The LAX Industrial area…the Real Estate Rep who called was from a new start up… by the name of ” Office Depot”, after a fairly smooth negotiation we finalized a lease..and a few months later I leased Office Depot an additional 200,000 square feet of distribution space. In the Silicon Valley hey day of start ups there were landlords who in exchange for up to a Year of Free Rent received equity in the new start up…that’s creative!
Here’s a fun fact for the day, provided courtesy of ,Thomas Friedman who quotes Robert Litan, who directs research at the Kauffman Foundation, which specializes in promoting innovation in America: “Between 1980 and 2005, virtually all net new jobs created in the U.S. were created by firms that were 5 years old or less,” said Litan. “That is about 40 million jobs. That means the established firms created no new net jobs during that period.”
With the national unemployment rate near double digits and credit markets tight, now is a great time to start a business. Really, it is. Think about it: thousands of workers can’t find jobs, so the talent pool is large and cheap. Good jobs seem less secure as companies cut hours and salaries so people are more likely to risk working for a startup. True, loans and venture capital funding are harder to secure. But even that is more of a hurdle than roadblock. Bootstrapping an entrepreneurial idea with your own capital is often the best way to go, says James Shein, a professor at the Northwestern University Kellogg School of Management. “It’s so hard to raise money during a recession that people now have to sort through their ideas.”
Many successful companies were started during periods of economic downturns, including Microsoft and Southwest Airlines. These businesses don’t share any single startup formula for success, according to business historians. Instead, it is a combination of luck, good ideas, and the willingness to work killer hours.
Postscript to Office Depot…..2009 Employees 41,000
Get Creative….that idea you have been sitting on …Now might be the Time to put it out there…you will benefit…and we the consumer will too.