Is it a Good Time to Start a New Business in a Recession?

In the last recession of the 1990s thousands of people, many of whom were made redundant successfully set up their own businesses.

If you are in this situation and you decide to start up your own business perseverance and determination are absolutely critical. In the early days you can not allow yourself to be swayed by negativity or failure to secure business after many repeated attempts.

It is essential to always keep motivated and to imagine success and the feeling that you will have when you secure your first client. You need to focus on tailoring each opportunity to suit your clients needs, don’t be afraid to ask for feedback as to why you did not secure the deal and adapt appropriately to secure future deals.

One of the major hurdles often facing start up businesses in a recession is how to secure funding from banks at a time when they are cutting back on offering loans. The only way to ensure success here is to invest a considerable amount of time in writing a rock solid business plan.

The other advantage one has if you start up in a recession is that you are already used to being more frugal and questioning everything to ensure that you make the best and most informed decisions. You are also more likely to develop the intense vision and commitment to ensure business success. Don’t forget how better placed you will be when you come out the other side after the recession.

If you can set up in a tough market look what wonders you will be able to achieve in a more receptive market place.

Don’t forget that success also depends on your own personal enthusiasm and your ability to build relationships and offer excellent products and services to all potential clients. If you achieve this you are also more likely to keep these clients when the good times begin.

So where do you start?

1. Think of an appropriate business name

2. Write a robust business plan

3. Investigate sources to get initial financial funding

4. Build a website (note – the DIY versions on the internet are not only cost effective they can also look extremely professional)

5. Develop a Marketing plan: Define the product/service that you are planning to offer, where you are going to sell it, the price you are going to charge and what incentives you plan to offer to clinch your first deal

6. Develop an advertising plan to build awareness of your product/service, for example: Ring up all potential clients to introduce your new business, send out flyers and business cards to potential clients with appropriate covering letters and get on the internet and start driving traffic to generate free media

If you decide to go ahead you must remember to hold the VISION and imagine SUCCESS.

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