Starting a business in the current economic climate may defy logic. Why would I be crazy enough to give up my secure job to take the entrepreneurial plunge right now?
Experts will tell you that a recession is one of the best times to start a business – several well-known successful companies today got their start during major economic turmoil in the U.S. These companies succeeded because they found a niche market that wasn’t being filled by anyone else. Identifying a market need is vital for any business startup, regardless of the economic climate.
But risks of failure are greater in a recession so you need to keep expenses as low as possible. Businesses that start and survive a recession though are in a unique position to profit and benefit from the inevitable economic upturn. But if you wait to form a corporation until after the recession, you will be that much more behind.
Keep startup costs low by:
1. Keeping you day job – If you’re fortunate enough to still be employed, start your business during your free time. You will still have steady income from your day job which allows you to focus on making your business profitable with less risk.
2. Not buying, leasing or renting office space – Launch your business from a simple home office to save on this expense. Many ventures can be easily managed from the home, eliminating the need to spend money on office space.
3. Not hiring employees – If you need help from others, consider hiring them as contractors rather than employees.
4. Advertising by word-of-mouth – There are many ways to advertise your products and services without spending money. If you can’t sell it yourself, no one can.
There are many recession proof industries you can launch a successful business in. These include:
• Food
• Healthcare (including psychology and substance abuse)
• Computers and IT – people tend to fix broken machines rather than buying new ones during a recession
• Security
• Education services (many people go back to school in hard economic times)
• International business – the economy in other countries may be better
One challenge to starting a business is finding your niche – something that distinguishes you from other related things currently available. One of the best ways to find your niche is to create a business that offers something you needed but couldn’t find.
Read this article from Entrepreneur.com for more insights. And when you’re ready to launch your business, turn to the online incorporation experts at MaxFIlings.com to form a corporation online easily in just minutes.