10 Tips for Starting a Home Business in a Recession
photo credit: bgilliard
The following is a guest post by Troy Shanks.
Starting a business today, with the way the economy is, can be scary for anyone. Don’t let it keep you from making your dream of owning a business a reality. It can be done with careful planning and consideration before jumping into owning your own business. Some of the most successful companies were started in a recession because they fulfilled a need for products or services that were necessary even in times of an economic downturn. These companies continued their success throughout the turnaround of the economy as well. Use the following 10 tips for starting a work from home business in a recession to help you get started.
Tip #1
If you are lucky enough to still have employment, keep it while you start your new business venture. Wait until you are sure that your business is going to make money before letting go of your regular paycheck. Jobs are hard enough to find, and if your business fails, you may be stuck with no income at all.
Tip #2
Careful planning will need to be done before deciding what type of business you will start during a recession. It must be able to prove it’s needed even during a time of economic downturns. A business plan is a must.
Tip #3
Research is a necessity while coming up with a business plan. Make sure you know everything there is to know about the industry you are breaking into.
Tip #4
Join professional associations in your field to give your business a kick start even in a recession. Having professional contacts is vital for the success of any business.
Tip #5
Line up your clientele first. During your planning stages, take the time to go ahead and find customers and clients to purchase your products or services. Do this by offering items for free or at a highly discounted rate to get the word out that you are going to be in business.
Tip #6
Consider using people on a sub-contractor basis to fulfill your employee needs. This will cut your costs for health insurance and taxes that can save you enough that you can spend more money in other areas of your business.
Tip #7
Know what your taxes are going to be before starting. It’s better to have an accountant take care of this for you so you can concentrate on your own business and not be worried with the tax end of things.
Tip #8
Advertise heavily. While many businesses may cut back on their advertising dollar during a recession, the ones who really hit people hard have proved to excel.
Tip #9
Think long term. Every decision you make for your new business in a recession or not should be aimed at the long term success of your business.
Tip #10
Never stop marketing! Market your business constantly without fail. Month after month you should be spending time carefully marketing your new business even during a recession.
Troy Shanks is a Work From Home Business Entrepreneur that specializes in helping people build income streams while working from home.
Hortensa Dewalt on February 13th, 2009 11:34 am
Great tips.
Another important thing to do during a recession is to sell simple products that are cheap and have multiple purposes. During a recession, people usually try to get the most out of the products they buy, so less products with gimmicks, more products with quality and selling products with multiple purpose excite customers trying to pinch every buck.
huntai7 on February 14th, 2009 7:48 am
Tip #10 – I am very like it. Yes Never stop your marketing!! I Agree :)
Jaclyn on February 15th, 2009 7:28 am
Those were some very good and helpful tips for everyone who is planning or thinking about opening their own business. i never would have thoughts that now would be a good time to start your own business with the economy being the way it is right now, but i’ve heard of so many people making a go of it and it turning out great for them, i’ve even had family members that have started their own business and have never been happier…so it’s definitely possible.
card on February 16th, 2009 12:27 pm
I really think the key to starting a business in a recession is to understand what products and services are still being utilized. The best way to research this is to check out various procurement sites of schools and governmental entities to see what they are still buying. The hyperlink over my name just has opportunities listed for SC and GA right now, but it’ll give you a good idea of what businesses will work.
Frank MonaVie Man on August 31st, 2009 10:28 am
Troy, nice article. The tax thing is definitely very important, and often overlooked.
Thanks,
Frank
Leave a Reply