Monday, March 16, 2009

Business Start-ups During a Recession

By Laura Nelson-Smith

With our economy's present state, most people think it's a bad time to start new businesses. That couldn't be farther from the truth! Many businesses begun during a recession are still thriving today. It isn't necessary to start cutbacks or becoming overly frugal.

Many large companies started their businesses during times of recession. Johnson & Johnson, MacDonald's and Microsoft are among the ranks of those who kicked off their business in times of economic uncertainty. There are many different business ventures easily adapted to our economic times.

Consider the goods and services people still require during times of recession. By conducting research carefully in regards to these needs and how your dream business can assist during economic downfalls, you can easily and successfully cater to the needs of the people around you. With careful planning being your primary concern, it is that much easier to cater to the needs of those around you, providing you and your business with a foothold to success.

Be specific when outlining your business plan. There are many varying aspects to consider, depending on the business itself as well as where you will be fulfilling the various obligations needed for your business endeavor. Ask all the questions necessary consider all the aspects involved and enter this decision as informed as possible. This process will be of endless wealth to you while starting your new business.

Costs may be lower in reference to your start-up fees, simply because we are in a recession. It just happens to be a buyer's market for real estate at this time if you need a location outside the home for conducting business.

The next step towards success is to track those perks you can use to bring in more clientele. Depending on the type of business you plan to start and the information you came up with when creating your outline, with some careful consideration you could be drawing more people to your business. Whether you decide to offer higher priced items or services to a small client base, or discounting goods and services to obtain a larger clientele depends on your specifics established in your outline. Take the time to work out all possible scenarios, and develop an overview of strategies.

Your goals may be smaller at start-up of your business due to present economic state. Establish the level of funding available to you and create goals or plans within the same level. Ensure that your available funds are well invested, and thus creating a business mindset of responsible spending. When you create this mindset, you are less likely to over-spend; especially once your clientele's money is involved. By creating a level of capitalization based on your own financial contribution, you are protecting not only your business, but your clients as well.

With this mindset now in place it's time to set some achievable short term and longer term goals. Feasible short term goals are any that you wish your business to achieve in a period of time between six months to a year. Longer term goals should be aimed for the first five years your business will be effective. Give your business, as well as yourself at least two years to become profitable, especially during a recession. Many businesses don't make a large profit margin in the first two years

When it comes to marketing during times of recession, it's time to break out the creativity. You need to consider different ways to market what you have to offer, causing potential clients to notice you have what they may need. The goal is to get that clientele coming to you, instead of any potential competitors. Advertising can be done in many different ways, from online web pages, local magazines and newspapers to community bulletin boards. Talk to other business owners in your area and explain briefly what your business entails. This could result in them allowing you to post a flyer on the store or market's bulletin board. Being business owners themselves, they could understand your goal to start this new business venture and allow you to put a few flyers in their staff room, or have them put in their customers' packages as they complete their transactions at the checkout counter.

Plan your grand opening at a time where you are most likely to attract business. The importance of hitting your targeted customers can't be stressed enough. For instance, launching your Easter line within 2 weeks will be just the right timing for people to be close enough to the occasion to not be overwhelmed by making purchases or requesting services too far in advance.

Recessions can be frightening experiences. By taking the time to properly and thoroughly plan your business venture, as well as making your clientele feel appreciated you are well on your way to a pleasant and successful new business.

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