By Pamela Martinez, JBS Corp.
In times of uncertainty, it is difficult to imagine the light at the end of the tunnel. COVID-19 has globally changed our way of living. Many Americans have been fortunate enough to work on-site or work from home, but many more are unemployed. It is easy to be stressed, discouraged, and worried about your next source of income. However, there is a silver lining in this situation. If there is anything U.S. history has demonstrated, it’s that the economy always recovers and that many successful businesses derived from recessions. The U.S. has survived over a dozen recessions. From those, we have created companies such as Disney, Microsoft, General Motors, CNN, Hyatt Hotels, Trader Joes, Netflix, Apple, Groupon, and Airbnb. And more recently founded during the Great Recession of 2007-2009:
- Uber: Together, Travis Kalanick and Garrett Camp founded Uber. Originally named UberCab, Uber started as a costly black-car service in San Francisco that connected a person with a local driver with the click of a button. Not long after, the company began to shift to a more affordable platform to reach more users. Uber took the age-old concept of a taxi service that made it more affordable, accessible, and personal by connecting riders with drivers, and now is the number one ride-sharing app.
- Venmo: Founded by two college friends, Andrew Kortina and Iqram Magdon-Ismail, Venmo was initially thought up as a means of monetizing live music. But the idea quickly changed when they found themselves in a money bind while on a trip that resulted in Iqram having to write an old-fashion check. Andrew and Iqram sold Venmo for $26.2 million to Braintree, which was later acquired by PayPal for $800 million. What a fantastic payday! Venmo has now become one of the most popular forms of virtual money transfer.
- Warby Parker: Bewildered by the challenge of finding affordable eyeglasses, Neil Blumenthal, Dave Gilboa, Andy Hunt, and Jeff Raider, founded Warby Parker to provide the public with a high-quality, inexpensive alternative to purchasing glasses. Like most startups, it took an influx of obstacles for Warby Parker to succeed. The main obstacle centered around one concern, who will buy glasses online? But every problem has a solution, and now, Warby Parker is one of the most successful eyeglasses retailers.
So, while you sit at home and ponder on how you can make the best of this situation, remember that a vast majority of the companies you rely on for your day-to-day needs started in a similar economic position. It’s normal to feel discouraged in times of disparity, but it is also essential to take this time to turn your ideas into reality and turn your hobby into your income. Contrary to popular belief, it doesn’t take millions of dollars to fund these startups. Many are founded with a couple thousand in savings—some, with just a few hundred bucks and a dream. Success doesn’t come easy, but it certainly comes to those who work hard and aren’t afraid to fail.
List of Companies Started During a Recession:
The Panic of 1893
- General Electric – 1892
The Panic of 1907
- General Motors – 1908
The Great Depression
- Disney – 1929
The Recession of 1937-1938
- HP – 1939
The Recession of 1958
- Trader Joes – 1958
The Recession of 1969-1970
- FedEx – 1971
The Recession of 1973-1975
- Apple – 1975, 2001
Reagan Recession of the Early 1980s
The Great Recession of 2008
If you would like to discuss strategies for your startup or small business, you can contact me directly at pmartinez@jbscorp.net for a free consultation.
