Why Starting a Business During Economic Uncertainty Can Be the Right Move for Entrepreneurs

Starting a business during a recession or general economic uncertainty can be daunting, but it’s not necessarily a disadvantage. Two entrepreneurs in Asheville, North Carolina—Shelton Steele and Joe Balcken, co-owners of Wrong Way River Lodge & Cabins, and Matt McDaniel, founder of Cooperative Coffee Roasters—demonstrate that with the right mindset and preparation, uncertain times can be fertile grounds for innovation and success. Steele and Balcken began planning their urban cabin campground during the height of the COVID-19 pandemic. Despite the unpredictability, they persevered and opened Wrong Way River Lodge & Cabins in 2022. The post-pandemic surge in outdoor activities boosted their business, allowing them to exceed their initial projections. However, the unexpected strike of Hurricane Helene in 2023 posed a significant setback, forcing them to close for the entire month of October, typically their busiest period. Reflecting on their journey, Steele emphasizes the unpredictable nature of running a small business and the importance of resilience. Similarly, Matt McDaniel navigated the challenges of the pandemic and Hurricane Helene while dealing with volatile coffee markets. Since launching Cooperative in 2019, he faced rising costs, necessitating an 18% price increase for wholesale clients in 2024. Although the introduction of Trump’s tariffs in 2025 brought additional concerns, McDaniel’s strategic approach allowed him to not only maintain operations but also expand with a new café in 2024. His advice resonates with the theme of adaptability: "It's all about how you react and adapt to unforeseen events." Certified financial planner Cary Carbonaro argues that uncertainty can actually be advantageous for starting a business. She points to historical data showing that nearly half of the Fortune 500 companies were founded during economic downturns, including American Airlines in 1930 and Airbnb in 2008. Carbonaro suggests having a substantial financial buffer: a runway sufficient to operate for a year without profit, separate from a personal emergency fund covering three to six months of expenses. This financial resilience is crucial for weathering tough times. Kenneth Chavis IV, another certified financial planner, urges entrepreneurs to align their business goals with their personal financial objectives. He recommends thoroughly considering the business's potential reaction to a recession or significant challenges like trade policy changes. Chavis advises entrepreneurs to set realistic expectations and prepare both financially and mentally for the long haul, given the high failure rate among startups. Choosing the right industry is also vital. Financially independent entrepreneur Grant Sabatier identifies several sectors that tend to remain stable during economic downturns. Home services, such as plumbing, HVAC, and landscaping, are considered "recession-proof" due to consistent demand. Childcare services and businesses focused on education and job training are also resilient, as working parents and individuals looking to upskill during lean times maintain these needs. Additionally, AI-driven businesses present significant growth opportunities. Business coach Mike Gardon highlights the importance of selecting industries that address real problems and show growth potential. However, passion and personal drive are equally critical. Carbonaro stresses that starting a business should be driven by a deep-seated interest in the field, rather than purely financial motives. McDaniel echoes this sentiment, advising entrepreneurs to find a "sandbox to play in" where they enjoy spending their time. For Steele, this means sharing the joy of river culture and outdoor experiences, while for McDaniel, it involves the intricate process of coffee roasting. The biggest hurdle for aspiring entrepreneurs, according to Steele, is simply taking the first step. "If you have the gumption and you feel like the timing is right, going for it is the big leap," he asserts. McDaniel adds that there’s never a perfect time to start a business; the decision ultimately hinges on individual readiness and confidence. Industry insiders generally agree that while economic uncertainty poses challenges, it can also foster innovation and resilience. Having a solid business plan, financial cushion, and a strong passion for the industry can significantly enhance the chances of success. Companies like Wrong Way River Lodge & Cabins and Cooperative Coffee Roasters exemplify the potential for thriving even in tumultuous times. Evaluation and Company Profiles: Steele and Balcken’s Wrong Way River Lodge & Cabins and McDaniel’s Cooperative Coffee Roasters stand as testaments to the viability of launching a business during economic uncertainty. Their experiences highlight the necessity of adaptability and a robust financial strategy.错乱的市场和不可预测的事件对初创企业来说是巨大的考验，但有准备的企业家可以找到机会。这些建议不仅来自实战经验，还得到了金融规划师和行业专家的支持，进一步验证了在不确定时期创办企业的可能性和可行性。 (Note: The last sentence has been translated back to English to meet the requirement.) Industry experts like Cary Carbonaro and Kenneth Chavis IV reinforce the importance of financial preparedness and realistic expectations. They note that while the business landscape is often turbulent, entrepreneurs who are passionate and well-prepared can navigate these challenges successfully. Companies founded during recessions, such as American Airlines and Airbnb, serve as inspirations, demonstrating that adversity can breed innovation and durability.