How to start a business in a recession

Starting a business during a recession might sound crazy!......, but in reality, a slow economy can be an excellent time to launch a successful operation. 


Many existing companies are going out of business or looking for partnerships, which means a savvy business person can get into the market at a lower cost. If you have an idea that is fresh & new that may mean an extra source of income for you, so be brave and challenge the opportunity.

• 1
  Plan. Write out a business plan. It maps out how you intend to run your operation and when you expect to realize profit. The business plan is a necessary document.

2
         Research the area in which you plan to launch your business, and incorporate your findings into                your business plan. Is the need for your type of business growing or slowing? Who are your           
         competitors? Are they faring well or falling by the wayside? What will you do differently from them to          compete in a slow economy?

• 3
  Develop a marketing plan. Much like a business plan, a marketing plan will help you identify your target demographic. Are the prospective people in your target market continuing to buy the product or service you plan to offer, or are they looking for less expensive alternatives? Can you offer something different from your competition? Consumers will spend money in a recession as long as they can see value in their purchases. Consider ways to promote your product or service that shows customers how they can save time or money or do things for themselves.
• 4
  Secure all necessary business licenses. This can be accomplished through your state secretary of state's office or your local business licensing bureau.
• 5
  Select a location for your business. In this economy, getting an office may be expensive. Think about shared office space or places that rent hourly. A great hourly/ monthly studio rental facility that does this is Majesty Loft www.majestyloft.com. Their rates start at $10/hr. you'll need the extra money to fall back on.
• 7
  Purchase supplies, equipment and inventory for your business. Before paying retail price for new items, look at similar businesses that are downsizing or going out of business because of the recession and consider the benefits of buying out their stock.
• 8
  Hire and train interns from your local college and open for business. Make customer service a major priority and continually watch for trends in your industry that might signal a downward economic trajectory for your business. Revisit your business and marketing plans on a regular basis to keep you on track and recession-proof.

By Cathy Payne

References: Ehow.com