It’s not unusual for budding entrepreneurs to fret over the best time to start a new business, especially during economic downturns when even the most self-assured impresarios often become paralyzed with doubt. They shouldn’t. After all, there are advantages to starting during tough times including reduced competition for top talent, and lower rent and overhead costs. A study by the Kauffman Foundation found that more than half of all Fortune 500 companies in 2009 were launched during recessions or bear markets.
The bottom line: For those with a great business idea and plenty of passion, the best time to start is always “right now.”
Photo Credit: Naotake Murayama
I think it also depends upon what kind of business and your own financial position. I wouldn’t start a business which required a ton of capital if I had no job and no savings, no matter how much passion or how great an idea.
But if your business idea has low overhead, the best time to start is now!
I think it also depends on what type of business you’re starting! First, you should search the market in that domain and see how it goes for your future “rivals” and then make a decision!
I started DQYDJ in 2009! Do I qualify?
I kid… kind of.
Hello,
My wife, bless her heart, is thinking of starting a business but I have reservations because it is one of those multilevel marketing companies (aka pyramid). The product is great and no inventory to carry just sell the product and get more consultants under you. On the surface it seems OK but I am just not buying it. What is the general opinion of something like this?
Thanks.
My opinion, Tony, is that you must be very careful because most MLMs are essentially pyramid schemes where you have to recruit new multi-level marketers (who end up competing against you). While it’s great for folks who get in on the ground floor — i.e., probably not you — once the market saturates, you’ll have to work extremely hard to make it work.
Tony, I hope this isn’t the “selling electric power” wheeze which was sweeping the country last year. I can’t count the number of contacts who called me to push this thinking they would suck me into the pyramid scheme. This one required you pay the company managing this scheme $500. to be “eligible” to annoy your friends selling power which they would get anyway if they continued to pay their monthly bill. Oh I hate Avon, Amway, Home Art, Tupperware, Mary Kay, the electric power selling scheme, and all of similar ilk, all of which require you to irritate your friends and attempt to embarrass them into buying something which they don’t want and do not need. You don’t make money selling, you only make money (few do) by sucking in hoards of others who then actually do sell which most don’t after they have exhausted and alienated their immediate circle of family and friends. Please tell your wife to get a part time job, become a dog walker, or do some other productive pastime in order to provide a real service and earn extra money. She is to be complimented on her ambition!
@ tony,
I have looked at multilevel marketing companies. It is legal, but one must be a very good salesperson going into this to make any money from it.
Len,
good post, a lack of options frequently encourages people to start good small businesses. I know 2 people doing just that now as a side job because hours at a day job got cut. So far, they seem to be doing OK.
Starting a business during a recession doesn’t have to be a bad thing. As long as the business offers a product or service consumers will think of as a necessity. Keep encouraging new business owners
I am interested in purchasing a lemon to sell lemonade out of
Dear Lance Berensen, Contact GM immediately! With all the recalls to fix fatal problems which they knew about but did not admit or repair during their “government motors” period, GM appears to have an abundance of lemons out of which one might sell lemonade. How about a Camaro or a Cobalt?
Great thoughts. Or, one can purchase an existing business for cheaper during a down-turn. I think a lot of the “rich-folk” do this too. Having recently purchased a business, I feel like it’s another way to go than starting from bare bones.