Is 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 out of work, people are struggling to find sources of income While 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? People aren’t spending on luxury items, so that 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 you 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 articles on how to start a business, or take a class or two at your local community college. It’s important that you see beyond the idea to what it takes to start and manage a business such as the business resources required: accounting, human resources, internet marketing and recruiting 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 you have sufficient resources to help you? Resources might mean finances or financial services firms that helps you get commercial loans, business cash advance or a small business line of credit, . Or maybe it’s staff. Is your husband willing to help you get started until you can afford to hire help?
• Do you really 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.

Bottomline

Start with a business plan before anything. Figure out what kind of investment you need for your business idea, who your customers are, how you plan to get customers for your business. Finally, how you will make money. Talk to other entrepreneurs, small business owners about your business idea, join an online small business networking site to see what they think of it. And most of all: good luck!