There’s always a risk when starting a business but with the recession people are worrying even more about taking the leap.
Yes, times are hard for most but the government is doing its best to stimulate the market by giving start-up businesses a bit of a hand. There are grants and loan deals to help get entrepreneurs started.
This is great news for the self-employed and small business owners.
Not only is the government desperate for people to start-up businesses, but , this is also a great time to get into the market before your competitors. For example, if you are thinking of setting up a retail shop in a small town, if you do so now then you will minimise the risk of competitors seeing the same gap in the market.
This means that when times do get better and new businesses start popping up all over the place, you will already be established. You’ll have a customer base, a brand and you’ll know the market better than anyone. This gives you time to set yourself up online too. If possible, you should set up an online presence (and shop, where applicable) as soon as you can. This can be used to drive people to you physical premises.
There’s also the fact that things can’t really get worse than this. If you start a new business it’s likely you’ll go from strength to strength as people realise they do have the income to spend money with your business.
The trick to this is to have a product or service that is desirable or useful enough that even after thinking very hard about it people still want to buy it. The problem isn’t that people aren’t spending; it’s that they just think very hard before parting with their money.
If you can identify a gap in the market and can find the funds to get started then I’d say go for it. Of course it’s a risk, starting a business even in the most affluent times can still be frightening.
To minimise the risk, make a detailed cash flow based on the market in its current state and any market research you’ve been able to do. Your loan repayments will be lower at this time than when the economy recovers, you might be able to find a good deal on premises and there are plenty of unemployed workers who would be grateful for a job.
If you forecast breaking even with your business this could be a great time to take advantage of market conditions. Things can only get better. If you can forecast a profit, even when being pessimistic with your figures, then that should really make up your mind. If you don’t make the leap now then you might end up regretting it in the future.
Take a look at Brian Ferdinand Liquid Holdings for a bit of business inspiration.