Starting a business during a recession might sound like a daunting
proposition, 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. Financial institutions
will lend to those with good credit and a solid business plan, and
government loan programs are increasing in an effort to jump-start the
economy. Additionally, the economy affects everyone, including
commercial property owners and all kinds of suppliers. As a result, a
new business has a chance to save money on startup expenses by making
purchases from motivated sellers.
Tips :1. Write your business plan. A business plan maps out every aspect of how
you plan to run your operation and delineates how and when you expect to
realize profit. The business plan is a necessary document if you're
applying for a small business loan.
2. Research the economic conditions of the geographic 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. A commercial real estate
professional can help you find the best space for your budget and can
provide insight into the dynamics of the location. You don't want to
find yourself in an office park that is quickly being abandoned by its
tenants or in a shopping center complex that is about to go bankrupt. A
real estate professional should be able to give you solid information
about retail traffic and the financial stability of the property.
6. Apply for a business loan or startup funding, if necessary. Because of
the recession, plan your budget to have at least six months of extra
operating funds. If your business gets off to a slow start because of
the recession, 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 employees 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.
Comments (10)
Ety D.6
employement
ur welcome all
Sandy John6
Data Center Consultant
thanks for sharing.
Shahzada U.12
Logo & Graphic Designer
Great tips, thanks
Vishwajeet Kumar14
Blogger
Thanks for your article its really helps to get stated.
Manali Patel7
SEO firm
Exactly the point that generally people may found the time of recession as the worst for the business as they think about the profit , that at the time of less economy they earn nothing. But reality is here suggested. Thanks for such article @Shaquile.
Chukwuekwu Okonta12
Forensic accountant
Good 8 tips to start when economy is in deficulties. I think 8 tips useful when one needs money to start internet biz
Brenda W.12
Life Learner
With the economy in the shape that it's in, this article should attract the attention of many who are looking to get some sort of income coming in.
Rached H.8
Business Consultant
Thanks, great tips
Marcel Valentijn6
Web Designer, Website Owner
thank for charing this with us.
Riselle Bonner10
Thank you for coming to my page
Lot's of great information ...well done ! This will help a lot of people who want to start a business !