Recession: A Good Time to Start a Business?

While it might seem contrary, starting a business in a recession can actually be a good
idea. With so many people getting laid off, people are struggling to
find sources of income. Many with that entrepreneurial drive are
starting new businesses.

Is it time for you to start a new business? Here are some questions to ask yourself:

  • Can this type of business thrive in this economy?
    You know people aren't spending on luxury items, so that pet spa idea
    might not be ready to bear fruit. But think about what people are
    spending money on, or how you could save them money with a business
    idea, and then you have a winner.
  • Do I know how to start a business? It's not
    necessary you know all the ins and outs of running a business, but
    starting one in a recession means you need to be better prepared than
    at any other time. Read some books on business, or take a class or two
    at your local community college. It's important that you see beyond the
    idea to the accounting, hiring, marketing and labor that will go into
    your business. If you'll have a retail or office location, overhead may
    be more than you originally guesstimated. Do your homework first.
  • Do I have resources to help me? Resources might mean money or an organization that helps small businesses, like SCORE. Or maybe it's staff. Is your husband willing to help you get started until you can afford to hire help?
  • Do I truly want to start a business? If
    you're just looking for a way to make some quick money, starting a
    business probably isn't your best option. You might not even make money
    (most don't for a few years; factor in the economy, and, well, you get
    the picture). But if you genuinely have passion for something, and are
    willing to put in the time and tears, by all means, get a plan and get
    going.

If you're still reading, I'll assume you found that you really do
want to start that business. Start with a plan before anything. Figure
out what kind of investment you need, how you'll market it, who your
customers are. Talk to others about the idea to see what they think of
it. And most of all: good luck!

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