Business Quote by Reid Hoffman
“One thing I learned in '97, when I thought the right time to found a company was during a swing-up, is that it's much better to start during an economic downturn. Partnerships are easier; hiring is easier; and the competition starts later.”
About This Quote
Source Interview: Podcast “How I Built This”, 2017
Starting a business in a downturn offers cheaper resources, less competition, and smoother partnerships.
In simple terms: Downturns make launching easier.
Key Takeaway
Launch when the economy is weak.
Themes
entrepreneurship
economics
timing
partnerships
competition
Mood
optimistic
strategic
Type
advice
business.
When to use this quote
- founding a startup
- seeking investors
- building a team
- expanding market share
Key Concepts
Market cycles
resource allocation
strategic timing
Questions to Reflect On
- How can you mitigate lower demand in a recession?
- What resources become more accessible during a downturn?
A Different Perspective
Downturns also mean reduced consumer spending and tighter credit, which can hinder growth.
![“[S]ometimes, when you are a food person, the possible irrelevance of what you are doing doesn’t cross your mind until it’s too late. (Once, for example, when I was just starting out in the food business, I was hired by the caper people to develop a lot of recipes using capers, and it was weeks of…” quote by Nora Ephron](https://sms4smile.com/quotes/img-quotes/d79/nora-ephron-1217_business_s-ometimes-when-you-are-a-food-person-th_980.jpg)
![“If the State does not acquire supremacy over [vast private] enterprises, it becomes their puppet, and they become the real State.” quote by Bertrand Russell](https://sms4smile.com/quotes/img-quotes/bad/bertrand-russell-69_acquire_if-the-state-does-not-acquire-supremacy_1379.jpg)