Be an Enterpreneur

Starting a business is difficult enough when the economy is

strong but when you decide to start a business amid a 9.7

percent unemployment rate--while foreclosures are at an all-time

high and bankruptcies are reaching epic proportions--the odds

for success seem hopeless.

For startups willing to defy the odds, there are many advantages

to starting a small business during a recession, and it can even

be done without burring yourself in debt. Experts will tell you

that the absolute best time to start a business is during a

recession, and several well-known, highly successful businesses

were launched during weakened economies.

Why did these companies succeed against the odds? They succeeded

because the founders recognized a need in the market and filled

it. Identifying that market need is the key to success for any

business--regardless of what the economic climate is when those

market needs are fulfilled.

Hewlett Packard was started in a garage during the Great

Depression with startup costs of just $538. It was the first

technology company to exceed $100 billion in revenue and is

currently operating in almost every country worldwide. Burger

King got its start during the recession of 1954; the Whopper was

added to the menu during the recession of 1957. Microsoft was

started during the 1975 recession. Bill Gates dealt with

primitive computer languages until the creation of MS-DOS, which

IBM Corp purchased, starting the company's climb to fortune.

Tips for Starting a Business In a Recession

The high risk of failure during recession requires that the

start up costs are kept as low as possible. Businesses that

start and survive during a recession are in the best position to

take advantage of the inevitable economic upturn. Businesses

that postpone launch until the economy shows signs of

strengthening are that much further behind, and give a head

start to competitors who took the risk of starting during a

recession. Keep starting costs low by:

Keeping your day job. If you're lucky enough to still have a

job, try starting your business in your off-hours. You'll have

the steady income from your existing job to pay your living

expenses and can focus on making your new business profitable

without the risk.

Not buying, leasing or renting office space. Most businesses can

be started right from your home. Don't waste money on an office

space or retail storefront before absolutely necessary. Use your

kitchen table, home office, basement or garage as office space.

Some businesses will never need to venture outside the home.

Not hiring employees. If you need help from other people, use

contract workers and issue 1099s instead of hiring employees.

Not wasting money on advertising. There are countless ways to

advertise your business, product or service without spending

money. If you--the maker of your product or provider of your

service--can't sell yourself, no one else can, either.

Recession Proof Industries

Whenever possible, you should look at starting businesses in

industries that are considered “recession proof”. These are the

industries where consumers will still pay for the products or

services offered even when money is tight. Recession proof

industries tend to be:

Food

Health care, including psychology and substance abuse

Computers and IT--especially fixing other peoples computers.

People aren't buying new equipment; they're fixing what they

have to save money.

Security / criminal justice / police

Education--adults go back to school when they lose their jobs;

more high school graduates will go to college because they can't

find jobs out of high school

International business--just because the economy is bad in the

US doesn't mean it is everywhere else

Finding Your Niche

When starting a new business, whether you create a product or

provide a service, you need something that distinguishes you

from everything else that's already available. Your long-term

success is defined by your ability to be both unique and better

than your competition, by adhering to these principles you’ll

fill a void in the marketplace.

(from the enterpreneur.com)