The economic headlines are all doom and gloom —- bank failures, store closings, bankruptcies, unemployment. Would anyone even think about starting a business today?
Yes. And some people should, said Lydia Jones, director of the Kennesaw State University Small Business Development Center. “We’re seeing markets and industries contract. Many small businesses are hurting. Those that aren’t strong enough won’t survive. Others will make it but won’t grow. In times when the economy is booming or tanking, we are covered up with people seeking our advice and assistance,†Jones said.
Despite the negative news, Jones is a firm believer in small business. “I’ve seen small businesses turn on a dime when big business couldn’t or wouldn’t change. Small-business owners are so open to new ideas and ways of doing things —- they’re like sponges —- and we need them right now.â€
For all the belt-tightening and small-business pain, she’s also seeing owners innovating and grabbing for opportunity amid the chaos. “People start businesses in all economies,†Jones said. She’s seeing new enterprises succeed in the bio-tech, green/energy-saving, training and service sectors. So when she sees someone come in “with blinders on,†meaning that the person has such passion for his business idea that he is willing to take huge risks, she encourages him to go forward —- with caution.
“I advise entrepreneurs to plan more thoroughly than ever before, because there are more challenges facing them in this economy,†Jones said. “They can’t leave any questions unanswered when lending communities are still so cautious and customers less willing to spend money. You have to have a very strong package to present to lenders or investors.†You also need more contingency plans than usual. Read more.