Glen Luckman Business in a Slow Economy

Should You Start a Business in a Slow Economy?

Glen Luckman Business in a Slow Economy By Woody Kaye

Imagine this scenario: you are walking or driving home from your current job. You may or may not enjoy your employment, but of course you are glad to have the job when so many people are unemployed. In fact, you were just thinking about what a great opportunity it is for you to have this particular career since there is a possibility for upward movement and even a raise in your future.

However, as you continue to drive, your thoughts wander. You start thinking about your real passion, and the business that you always hoped that you could start. Now seems like the perfect time. People really need that service. But how can you be certain that you will succeed? Your mind spins in circles. You feel trapped. You know you might never forgive yourself if you let this opportunity go, but you also can never forgive yourself if your family loses their home thanks to your business adventure. There seems to be no way out…

Lots of would-be business owners deal with this issue on a daily basis. They know that they have a product, but they fear that particularly in a slow economy, they will not be able to make it through that difficult start-up period. They let their dreams slide, or even give them up all together. But what if you are right and now is the time?

Here are some ways to determine if you should start a business in a slow economy:

· Evaluate your savings

If you have enough money saved to live for say, two years, then you have a pretty serious cushion. However, if you are fully dependent on your current salary, then you certainly cannot afford to quit your job and work on your new business full time. However, this does not mean that you cannot start a business by any means.

· Set up a timeline

Usually, business owners use timelines to set goals. In this case, however, you will be using it to plot a strategy. Determine when and how you will work on your business in the time that you have available. Do not do things like committing to yourself that you will work from 3AM to 7AM each morning unless you have historical evidence that you can follow this kind of routine. Be realistic. If you can determine that you have real time to put into this effort, then it is probably worth a go.

· Analyze your opportunities

In this economy, it is important to be creative and objective. Make sure that there is a market for your product or service. Also, think about how you can promote your business even when you are not actively working. There are a lot of ways to advertise that can help you get “double duty” from your work, such as using promotional materials or viral marketing to brand yourself.

If you analyze the situation and it appears that you are in a good position to make a new business, then get started. Just be sure that your family and your bases are covered and that you manage your new business in a way that caters to the advantages of this particular economy rather than working against them.