Top 10 Reasons to Start a Business in a Recession

More publicity. Less competition. Talent waiting to be scooped up. Here’s why starting in a recessed economy may give your business a better shot.

Do you have one good reason to start your business right now?

How about 10?

Regardless of what people around you (including the media) may say, right now is the best time to get into business. Just go back and look at the economic slowdowns throughout history. Most recessions in the post-World War II era last an average of 10 months, followed by growth cycles that last an average of 50 months.

What this means for the startup is there’s no better time than right now to get going and start pursuing your business dreams–in anticipation of the next period of growth.

So with a nod to David Letterman, here are my top 10 reasons you should start your business now–despite the current downturn:

1. Everything is cheaper.
   Let’s face it: There is great value right now in this and in world markets. This is the right time for fantastic deals in virtually every category, from land and equipment to commercial office space, personnel and labor. As asset prices have been knocked down, there is no better time to get into the real estate or financial markets, or even heavy equipment and construction. Some people have waited years to find value in these markets–and now that time has come.
2. You can hire more and better-qualified people.
   In an era when even Microsoft is laying off, you can find great resources at affordable rates. Thinking about getting your high-tech startup off the ground? There are plenty of engineers waiting to be hired. Thinking about forming a professional services firm? There are many accountants and attorneys looking for their next opportunity.
3. People are looking to change suppliers.
   From a cost perspective, everything is on the table for most companies. Even if your prices are higher, if you can come in with greater value, you have a good chance at winning new business. You also have the advantage of being the new kid on the block when it comes to pitching your products and services. Many companies are desperate to find new partnerships with new companies that have a different, better or more innovative way of delivering those products and services.
4. Ownership equals tax incentives.
   Business ownership offers a variety of tax benefits that aren’t available to employees. While taxes should never be the sole reason to go into business for yourself, it should be one reason to add to you “benefits of business ownership” list.
5. Family and friends don’t want to (or can’t) invest more money into the stock or real estate markets.
   That means they may be willing to finance a portion of your new venture, or the expansion of an enterprise that has proven itself over time. The main benefit is that they know you and have a relationship with you–and if you have a solid business plan that delivers real numbers, your chances of raising the capital you need increase exponentially.
6. Suppliers are giving better credit.
   Because the credit markets have virtually shut down, the B2B credit flows are keeping money circulating out of sheer necessity. That means a bullish outlook for companies looking for good terms on stock and/or inventories. The main advantage is that all parties have more incentive than ever for finding true win-win situations that allow for cash and stock flow. When everyone is looking to survive, great deals can be had.
7. You can get good PR by showing you are going against the trend.
   The media loves aberrations, and if you are optimistic by expanding or getting into business now, you would be in that category. That means you can generate some great PR by demonstrating your “alternative” view of the market.
8. You can buy everything you need at auction.
   In addition to everything being less expensive, you can find great deals at auctions, especially in terms of any large equipment and office furnishings. Auctions are also a great place to find hardly used or “gently” used restaurant and bar supplies at great prices. These days, you may even be able to get deals on fleets of vehicles and trucks for a delivery service or hauling or construction company.
9. You can find great “low money” or “no money” down deals.
   This is simply being aware of good opportunities others have buggered up, and finding deals where you could get an entire business simply by taking over a lease (along with all the equipment). Many business owners want out at any cost, meaning you can negotiate great win-win deals that allow the current owners an escape while giving you an opportunity to turn around what could be, if run right, a very viable business.

   And finally . . .

10. You’ve lost your job, and you have to do something.
    Sometimes, the best business decision is the one you are forced into, and the incentive (as well as need) for income is often enough to push those previously “on the fence” to strike out on their own. There’s nothing wrong with being in this position; it simply means there is greater urgency to do something that will start to generate income as quickly as possible.

There you have it: my top 10 reasons to start your business in a recession. After all, the odds are on your side that the expansion will be many times more robust than the present slowdown.

There’s no better time to start than the present, especially if people around you are more comfortable with their own list of reasons why they shouldn’t start pursuing their own business dreams right now. It only means you’ll be facing a lot less competition.

Brad Sugars is Entrepreneur.com’s Startup Basics columnist and the writer of 14 business books including The Business Coach, Instant Cashflow, Successful Franchising and Billionaire in Training. He is the founder of ActionCOACH, a business coaching franchise.

Source: http://www.entrepreneur.com/startingabusiness/startupbasics/startupbasicscolumnistbradsugars/article200342.html

10 Steps for Creating a Successful Business

Step 1: Create a Life Plan

Plan your life, then plan your business.

As we always say, plan your life, then plan your business.

Some of the most successful and happy people we know are entrepreneurs who created a business that’s in perfect synchronicity with what they want out of life. If you do what you love, you’ll work harder, better and more happily.

In this step we will focus on:

• Elements of your Life Plan
• Using your Life Plan

Elements of your Life Plan:

Your Current Status

Think carefully and honestly about where you are now in your life. Consider work, recreation, relationships, finances and anything else that’s important to you. And then jot down some simple, succinct bullet points in each of these categories:

• Quality rating of your life on a scale of 1 through 100, with 100 being the best possible life
• Realities of your life, including responsibilities, funds available to start a business, expenses
• Things that make you happy
• Things that make you unhappy

Your Ideal Life This is a snapshot of your “ideal” life, in a very brief, bulleted list. And remember, the sky’s the limit, so don’t be afraid of being bold or maybe even a little grandiose. Factor in things like family time, hobbies, charity work, early retirement – anything that gets you really excited.

Your Loves: What You Really Like Doing

Think about the types of things that you love to do, whether at work, at home, or at your local soup kitchen. List these things out briefly. And don’t worry if some themes are starting to repeat in each section, that just means you have some really focused ideas about what you want in life!

Your Skills & Capabilities: What You Do Well

List the abilities, experience and strengths you can build on to attain that ideal life.

Bear in mind that your skills need not be strictly from your professional life – list skills developed in your personal life as well. It may be a combination of skills that leads you to a startup that’s best suited to fit your needs.

Your Track Record: What You Have Experience Doing

List those accomplishments in your professional and personal life of which you’re most proud. Pay particular attention to successes you’ve had that would be helpful in starting a business and managing it successfully.

Your Ideal Work Style: Whether full-time or part-time, at-home or on the road, working behind the scenes or interacting with lots of people — understand what your work style priorities are so you can define the best kind of business for you.

Another way to look at this is, what level of risk do you want to take? You may want a relatively low-pressure first-go at entrepreneurship.

Your Manifesto: This is your personal mission, your values and what drives you forward, all wrapped up into a one-page (maximum) statement. To write this, you should draw on everything you’ve already discovered about yourself in steps 1 through 6, and bring it all together into a clear statement of your principles and priorities.

Our example manifesto

Work as Freedom: We think work is about pursuing our dreams, not for the benefit of some nameless, faceless company, but for ourselves. We believe that owning our own business leads to the liberties and freedoms that the forefathers of our country envisioned for us. We’re free to choose the kind of business we conduct. We’re free to choose the way we spend our time. We’re free to choose the people with whom we work. We’re free to set our priorities. Work as Family: We’ve tried to create a workplace environment where employees feel like they’re actually members of a greater family. There’s a sense of common purpose, mutual respect, and deep trust. Everyone should feel important and as though they’re a meaningful member of the collective effort. It’s an environment that empowers people to share in the hard work—and in the benefits. Work as Fulfillment: We’ve made it a priority to ensure that our work gives us a sense of satisfaction. When we wake up in the morning, we can’t wait to get on the phone, get online, and get our team in gear. The work we do is truly the work we love. For us there’s nothing that turns us on more than facing a challenge and transforming it into an opportunity. There’s nothing more thrilling than seeing a customer use our product. There’s nothing more gratifying than helping someone else turn a dream into a real business. And over time, we’ve found that our fulfillment comes as much from the process of trying to achieve our goals as it does from actually achieving them.

Key Moves to Get You Where You Want to Go

These are simple strategic action items you must develop in order to transform your Life Plan from a self-assessment into an action plan. At this point in life planning, you know where you want to go, what skills you already have, as well as what type of work suits you best. Draw from that information a list of moves you’ll need to make to achieve your ideal life.

It’s very important to print your Life Plan and keep it in plain view. You’ll find that its presence—even in your peripheral vision—will constantly remind you of what you want, what’s important, and what to do next.

Ideally, you should also revisit your Life Plan periodically to measure your success and to make adjustments and additions where appropriate. It’s okay if things change over time—life is a fluid and dynamic thing and your Life Plan should be, too!

Use your Life Plan to provide context for strategic decisions you make—including what niche you choose to operate in, what business model you’ll use, whether you’ll have lots of employees or a home-based, one person operation.

Most importantly, your Life Plan will position you to do what you LOVE and that always brings out the best in an entrepreneur.

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