The difference between building a startup in bull and bear markets:
The companies that are barely profitable during a bull market usually fail during a bear market. While this is a shocking event for these businesses and their stakeholders, it might be positive for the economy in the long run.
The business failures driven by the recession serve as a beneficial forest fire – it burns old, dry wood, disperses nutrients in the soil, and opens up the forest canopy to sunlight, which stimulates new growth. The old failed companies open up space for new, more efficient, and innovative businesses and even new market niches. And the rise in unemployment due to the failures increases the access to high-quality employees for cheap, at least temporarily. Both of these conditions are vital for the success of new companies that have great ideas and future demand for their products but are short on capital in the short term.
Because of this, flexibility becomes the premium quality required to thrive in such a market. And while big businesses can be extremely inflexible because of the gridlock of the interests of their
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