Should You Buy A Business During A Recession? (excerpt)

Timing is everything, right? If that’s true, what are your thoughts on taking the plunge and buying a business during a recession? In this article we’ll dive deep into the positive — and the negatives, of pulling the trigger on a business purchase during an economic contraction.

Let’s start with some helpful definitions. A “recession” is defined as consecutive periods of reduced economic activity; otherwise know as “contraction” or “negative growth” in the economy. In the US, this is usually defined as two quarters of decline in GDP (Gross Domestic Product or the entire collective output of the US economy).

Here’s what a recession DOES NOT mean:

1) A recession DOES NOT mean that all businesses become unprofitable (although there are definitely going to be sectors and industries to avoid as they will be hit harder than others)

2) A recession DOES NOT mean that consumers stop buying products and services (although there are again segments where consumer behavior can change dramatically like vacation planning, expensive dinner outings, purchasing a used car versus a new car, etc.)

3) A recession DOES NOT mean that you cannot find good businesses to buy (quite the opposite in our experience as we’ll explore below!)

(remainder of article is located at: https://www.x10ventures.com/post/should-you-buy-a-business-during-a-recession)