Should You Start a Business in a Bad Economy?

Is It a Good Time to Take the Small Business Plunge?

I was speaking to a group of 7th Graders at Career Day at a local middle school when one of the students asked, “Is it a good time to start a business, considering the bad economy?” It was a good question (from the mouths of babes!), one that many adults are asking themselves in these unfortunate times of layoffs, rocky real estate, and dwindling retirement accounts.

My response, as the owner of a foreclosure cleanup business in Atlanta, was, “It’s always a good time to start a business. The trick is starting a business that works.”

 Businesses that Thrive in Bad Times

Some of the best businesses thrive in bad economies; for example, staffing agencies, resume services, thrift stores, and foreclosure cleanup businesses, to name a few. Businesses that take hits in bad economies are typically advertising agencies, the travel industry, jewelry stores, restaurants, etc. Traditionally, businesses that go after disposable income are the ones that suffer early on and suffer the most in the long run. But companies offering the products and services sought after in tough markets and at difficult times are the ones that do quite well.

For example, in Atlanta, we just had floods galore. These incredible floods will take a toll economically in many areas, but the businesses that will thrive as a result of these unfortunate floods will be enterprises like crawl space companies, carpenters, concrete companies, pest removal services, real estate cleanup businesses, and others in this vein.

If you’re thinking of diving into entrepreneurship in this down economy and you’re brainstorming business ideas, think about what people need, what they can’t live without, what they won’t think twice about spending money on because of sheer necessity.

When you land upon a business idea that will do well in both a good and a bad economy, you’ll really be on to something!

 Where to Brainstorm Business Ideas

Good places to search for business ideas are Inc. Magazine and Entrepreneur Magazine. They both have websites that provide start-up articles, how-to publications for purchase, advertising ideas, and general small business advice.

Where to Find Business Guidance

An invaluable tool is also the Small Business Administration (”SBA”). Visit their website at sba dot gov. The site has a wealth of information on startup, mentoring, classes, business marketing and more. They also offer a host of necessary business planning tools.

The Service Corp of Retired Executives (”SCORE”) is also an incredible source and can be visited at score dot org. SCORE offers face-to-face business mentoring and training, as well as online assistance, and in many cases you can visit with someone who has pointed experience in the industry you may be considering. (Our tax dollars at work in fine fashion with SCORE!) And most of their programs are low-cost and free.

Should you start a business in a bad economy? ABSOLUTELY! Opportunities are everywhere. Put your thinking cap on, do some keen research and solid planning, and open your doors!

Cassandra Black is the author of How To Start a Foreclosure Cleanup Business, and the Owner of Foreclosure Cleanup, LLC, and Real Estate Cleanup, Atlanta, GA