Sage advise from Ashish Gupta, a successful entrepreneur and venture investor.
its always a good time to start a company if one has identified a need that is very well defined and can be converted to revenue. The claim that downturns are a good time to start companies is a fashionable thing to say. It is the case that a lot of the “curiosity driven” entrepreneurs get weeded out in downturns. But that does not make it easier to build companies. In downturns pros are: more resolute people start companies, everyone focuses much more on expense and revenue and hence companies are built more tightly, fewer competitors start then. On the cons side for an entrepreneur, its harder to raise money, customers are less willing to buy because many paralyzed, exits become harder. So it depends on the particular person and company and is not a generic claim that can be made.
(This is an excerpt from an interview that appears here)
