Should You Start a New Business During This Recession ?

So we have a recession at the moment and many people are thinking of starting a new business but just haven’t got around to it or are probably too scared to start one. But most of the time from the emails and help requests we receive all we hear about are excuses.

People sign up to our business planning training and months later we ask how they are getting on and they say “they are still working on it”

Which is just crazy – why still working on their business plan after months?

I guess the fear factor is there. If you have a job and others around you are being made redundant why on earth should you leave that cozy office where you get paid each and every month? But if you put it off the chances are that you’ll never start and then just think you may actually be made redundant yourself and you’ll have nothing to fall back on.

So in the words of Nike – “just do it”

1) Start planning now : You can actually start all of the planning whilst you are still working as a PAYE employee – no one need know and so long as you plan in your spare time in the evenings and at the weekends there’s no conflict of interest. Build a plan for your first 3-6 months. You don’t need to take over the world as soon as your business starts because no one ever does. Start small and grow big. If you need a business plan layout to structure your thoughts have a look at this simple business plan format you can get online for free.

2) Market and network – There are just so many people that have done what you want to do before so there’s no need to reinvent the wheel. Network with people you know as well as other entrepreneurs – there are plenty of online business forums that give advice for free so get to it.

3) You don’t need much money do you? - These days costs are low and are getting lower and for most businesses that are operated by a one man (or woman) band you don’t need much. You can rent or lease most equipment you need (or vans and cars) and just get what you need right now – you probably don’t need a big office or flashy premises – those come later.

4) You can start right now – as mentioned in #1 there is no need to put anything off. You can get going right now planning and devising marketing campaigns. Your first customers can be friends and family – or if you don’t like mixing business and pleasure ask your friends and family to pass your marketing literature onto people they know.

5) Get your skills brushed up – Most of us have excellent skills but a successful business owner is likely to be a bit of an all-rounder with a good grasp of a lot of business skills. You can run a business without some of these skills as you can outsource or employ someone to do it for you. Check out our article on what business skills do you need to run a business.

If you just want to work on your own but don’t know what type of business is for you then have a look through our 10 top profitable business ventures – we also have written a couple of in-depth guides to starting businesses – 1) how to start a courier business and 2) how to start a book-keeping business – these may not be for you but the requirements are likely to be similar as there is loads you need to undertake to make sure you’ll be a success !

Also check out our guide to marketing your business during a recession - if you are having a quiet time then there are costs you can reduce and marketing activities to undertake to get going again.

Posted in Business | 4 Comments »

4 Comments - have your say

1. On the Money Says:

   This is a great resource – thanks, I’ve bookmarked you. There are definitely opportunities for new, leaner businesses during recession and hopefully we will see a renaissance … hopefully n ethical and greener businesses too …

2. kelvin newman Says:

   Some great tips, hopefully make a few people realise the biggest challenge of starting a new business it being brave

3. James F. Says:

   I think there is a big point to strike right now if you are fully ready and have thought this plan though. There are many signs of financial and economical recovery in the market both in United States and Europe* (according to latest Nationwide Consumer Confidence index: http://www.constructaquote.com/79/section.aspx/203/People-look-to-the-future-as-confidence-index-rises) so I really hope for some people this is the best moment right now.

4. David Morson Says:

   I think these tips are awesome, this blog is great as it has helped me a lot in promoting my business. I am a regular visitor of your blog and I have already bookmarked your homepage.

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