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Is it a Good Idea to Start a Business in a Recession?

by: Richard Newton | Print View

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With major corporations announcing huge layoffs and no jobs readily available to the newly unemployed, more and more people are finding the courage to start their own business using skills they already have or learning new ones.

In fact, a new poll states that the majority of people in the U.S. believe small businesses and entrepreneurs will lead the country out of the recession, as long as the financially-beleaguered banks start making it easier for those small businesses to get loans. In President Obama's recent speech to Congress, which was met with mixed reviews from small business owners, he did mention entrepreneurs and small-business owners, calling them the "the hardest working people on earth."

Whether you believe the stimulus package will help or hurt small businesses, the fact is both political parties recognize that small businesses are the backbone of the US economy.

What does it take to start a business? Other than courage, you need a plan, a product, self-motivation, and the ability to work independently. You need to be able to market yourself as well as you market your product, and to do that, you need a website. These days, if you don’t have an attractive website you don’t exist.

People are finding inventive ways of making a living, many by using skills they haven’t tapped into in years. And they are finding that not only are they resilient, they are finding that owning your own business has rewards that go far beyond the paycheck they are generating.

There is help out there for the fledgling business owner. The Small Business Administration has a vast amount of resources to help you, including mentoring programs and practical advice.

And there are other organizations that are geared to helping small businesses succeed.

For example, a company called ActiveFilings.com provides incorporation services for just $89.00 plus state fees and they offer a free corporate website, domain name registration and hosting services to their customers. Roberto Neuberger, CEO at ActiveFilings commented "we think that an inexpensive incorporation service plus a free website can help business ownwers to start making profits from the first day. We estimate they are saving no less than $500.00 with us".

Using a resource such as this is one way the fledgling entrepreneur can make life a bit easier for themselves by finding such a company that can help them wade through the necessary bureaucratic red tape that can often go along with starting a business.

Having an attractive website can not be underestimated in today’s competitive marketplace. Here, the small business owner has several options. They can hire someone to create a site, do it on their own, or find business-development sites, such as ActiveFilling, among others, who provide free websites, as well as domain name filing and web hosting.

It may be the best time to start a small business, because someone has to pick up the slack left behind by the large corporations who didn’t plan properly and who are now out of business. People still need services, they still need the same products, only now they’ll more likely be buying them from small businesses they find online rather than the mega stores that are disappearing from the landscape.

About the Author

Richard Newton - Journalist, Entrepreneur. For more articles of the same author visit IncorporatePlanet.com

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