Demand is the key. It is not wise to start a business in a down economy with hope demand will rise with recovery. Should you start a new business now? Maybe. It depends on whether you are getting into something with sufficient demand to support the business in a stale economy.
That’s always rule number 1 when starting a new business. You must have a “yes” answer to the question: Is there sufficient demand?
If so, it might be time to start pursuing your self-employment dream.
If you can demonstrate demand, starting a business when the economy is sluggish has advantages. Rent is generally lower during a downturn. You’ll have more locations from which to choose.
There are many people looking for work. If you will hire people for your new business, starting now gives you a great chance to snag prime talent at a bargain rate. Be prepared to raise pay to retain talent as the economy improves.
Finally, you can equip a business for less when the economy is slow. Equipment, furniture, computers and supplies are selling at bargain prices. If your business will require a build-out, construction costs are cheaper now. So is financing.
If you have a solid business plan, and do check with an expert on that, then NOW might be the right time to open a new business.
As always, I will close all new startup advice with: Consult with an expert before you spend any money on a new business.
Chris Reich, TeachU.com
FW: 89 (I’ll get through it, you watch)