Yes, you can start a business in a recession.
We know the headlines are bad, and this is not downplaying the effect of the economic upheaval the U.S. is facing, but no matter what, the world is not going to stop. You can still start a business, you can still follow your dream, your entrepreneurial fire; you just have to be a little smarter and a little original.
Recession fears haven’t slown down the venture capitalists, they invested a 6 year high of $29.7 billion dollars in 2007 :
“The industry’s optimism stems from a belief that many of today’s hottest concepts either are recession-resistant or are developing moneysaving products that may have even more appeal during an economic downturn.
The investment areas spurring the optimistic outlook include: health care and biotech; the Internet; and technology aimed at developing alternative energy, reducing pollution and promoting conservation”
A word of caution, I’ve mentioned it a few times already, this is not the time to head into social networking. If you don’t already have an idea of how to completely revolutionize social networking – please don’t start now. I believe I’ve reported on at least 6 new sites in the past month; the market is becoming clogged; this is not the time to try to squeeze in.
Not that social networking isn’t an important aspect of any marketing/promotional campaign in 2008, just don’t bet the whole kitty on it – don’t be another social networking site.
Look for a niche – find something new – look towards green, the environment. Just because it’s good, doesn’t mean it’s not profitable, and there’s nothing wrong with that. I wasn’t kidding about the designer grocery bags – with plastics being banned with increasing freqency, it’s going to take a special bag to stand out at the grocery store.
Keep your eyes open, look for that opportunity to jump out, and no matter what you do, write a business plan. Do not just take off running, this is not your college road trip. Work it through, there are details you haven’t even thought about thinking about yet.
I’m putting together a detailed post on what should be included in a business plan. In the meantime, feel free to email me for a business plan outline.