How to Start a Business During the Recession

According to "USA Today," a recession may be the best time to start a new business. Many well-known businesses began during a recession, such as Disney and Microsoft. With a bit of research, careful planning and frugality, you might discover that now is the time for you to launch your dream.

Difficulty: Challenging

Instructions

1. Write a thorough business plan. This document should include the focus of the business, marketing, revenue and other details. There are books and online resources available to help in this process. I've included some resources below.

2. Choose a business with low start-up costs. If possible, start your business in your home. Purchase second-hand or rent equipment or furniture. Investors are a more conservative in their investment opportunities during a recession, so you may not be able to find an investor for your business.

3. Do industry research. Check out your competition and try to determine what you can offer that will make customers choose you over the others. Follow market trends. If more people are staying home because of the price of gas, perhaps you can launch a business that helps them make this adjustment (entertainment, food, home services, etc.). Also, what is the success/fail rate for your type of industry in your area? These are all things to consider. Stay sharp and in-tune.

4. Market aggressively. Make customers think they need your product. Be sure to give your marketing strategy careful consideration for optimal results.

5. Network. Join your local Chamber of Commerce or local industry group. You will find both customers and peers that will benefit your business.

6. Treat your customers like royalty. Go the extra mile for your customers. Your customer relations will encourage people to come back and spread the word about your product.

Tips & Warnings

• The Small Business Administration offers many low-cost classes and loans for start-ups.
• Starting a business at any time carried some degree of risk. Be sure you have the positive attitude and time to put into this, and that your plan is well thought-out.

Resources

• USA Today
• Entrepreneuer.com
• My Own Business (Business plan sample)
• Small Business Administration
• Fox Business

[kp3028]

on 8/9/2009 Not everyone should be in business, as much as they would like to be their own 'boss'.

Another ehow article may help people understand if that business model is good for them:

How to be a Successful Home Based Business Owner
http://www.ehow.com/how_5060239_successful-home-based-business-owner.html

[ellenr123]

on 7/8/2009 Great article. I know a bunch of people using this interesting time to start new businesses or "find their passion" and turn it into a career. A few small business blogs I’ve read about a new online aggregator, JansDeals.com, that allows small companies to promote themselves and their specials and sales online. Apparently the founder of the site is giving away in the millions of what would be annual subscription fees to get small businesses on their feet.

[toking]

on 7/2/2009 Great article! So many people are attempting to find jobs right now. Hopefully, some of them will be able to start successful businesses.

[kugarand]

on 4/24/2009 In preparing for a radio segment about building businesses in a recession, I found your post. Terrific. I referenced it in my radio show used it for a presentation/webinar I'm doing and my blog post http://entrepreneurblogspace.com/2009/04/is-it-a-good-time-to-start-a-business-in-a-recession/Which also contains the link to the podcast from the radio show.

[ScarlettOHairy]

on 3/21/2009 Good ideas for starting a biz during a recession.