[SJL's Radio Weblog] Recession is code word for opprtunity. Eastside Journal Feb 20 2002 11:30PM ET
"When times are tough, conventional wisdom dictates that businesses cut back on expenses and exercise caution while waiting for the economy to recover. Unconventional wisdom advocates the opposite approach. Instead of applying the brakes during recessionary times, this school of thought believes in putting their pedals to the metal. Grab market share while the grabbing is cheap, they say. It's the way the rich keep on getting richer."
This makes sense - take action to squeeze your opponents out of marketshare while their down. Seems like there have to be limits on when you could apply this strategy -- at some point, there is a reality that people are spending less on fewer things -- you can't win customers who aren't buying.
[rosewater]
I think that this makes sense for some companies but it really assumes cheap access to capital, a luxury that most start-ups do not have. In the next business that I build, I will strive for both upward and downward scalability. You've got to be able to cut back quickly when market conditions change.
8:03:44 AM 
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