Starting a business during a recession

Please leave a comment below. Are you starting a new business, or trying to find a job? How are you handing your home life during this economic downturn?

The bottom line is this: starting a business during a recession is probably one of the best choices you can make.

If you’ve seen my other posts related to this subject, you should know that [a recession is more about a state of mind->What is a recession?] than an [economic issue->When it comes to business success, do what others won’t] when it comes to you. Also, it’s pretty clear that [starting a business during a recession->How smart people protect themselves during a recession] is a very good idea. Even [big name performance authors->Join the anti-recession revolution] have taken up arms against the recession by letting you know that it’s you that makes a difference to the economy.

Is starting a business during a recession easy?

Starting the business is easy, but it does require the right mindset to be successful. If it was just about applying the right “how to” every MBA on the planet would be super-rich and would have several dozen businesses under their belts like high-school dropout Richard Branson.

When you start a new business, you need to write some form of vision statement. Who, what, where, when and why are you starting a business? Who are you going to help? What are you going to achieve? When are you going to achieve it by?

Setting goals like these are often the first point of resistance for a new entrepreneur. I hear comments like “I’ve never done this before so how can I set a date” or “how do I know what I’m going to achieve?”

Consider that your first challenge.

You get to dream.

Oh, the horror.

By setting a goal, not only to you gain something on which to focus your movement, but you also gain a measuring stick. When you’re just getting started, you’re a long way from your goal, but that’s ok.

Now you know. As you get closer, you know you’re closer than you were before.

If you’re not any closer, you probably know that you need to either take action (because you’re not taking any) or you need to look at things differently.

“When you change the way you look at things, the things you look at change.” Dr Wayne Dyer

or

“If you had to look at this another way, what would it look like?” Dr Phil

Take your pick.

What if I fail?

What if, indeed.

Who would you rather be?

a.) the person who tried to do something new and started a new business, didn’t get it right and lost a bit of money in the process.

or

b.) the person who did nothing and stayed broke?

If you really don’t know how to start a business, recession or not, then the solution is simple.

Learn: and know that if someone with a 3rd grade education like Henry Ford could create a multi-billion dollar empire, there’s no reason you can’t do the same. The trick is to get started.

I think the learning stage is THE BEST position to be in. Admit you don’t know something and seek out a mentor that does.

Choose the perfect business

For just about any person, I feel Network Marketing is such a great opportunity.

  • You get access to mentors and training,
  • you get to focus on THE MOST IMPORTANT aspect of any business (marketing it),
  • the start up costs and very small (compared to just about anything else),
  • the product is already developed for you
  • many great marketing materials already exist
  • the right network marketing company ships products, and changes your clients for you
  • you can enjoy tax benefits that can translate to more money in your regular paycheck before you even make a dime in your new business

Best of all, what you learn in network marketing applies to any other form of business. The haters out there don’t think it does, but people who don’t have experience and/or success in network marketing don’t tend to have educated opinions about the subject anyway. If you’ve heard bad things about network marketing read the info from a [site->Fantastic Site on MLM and Network Marketing] published by someone who teaches network marketing at the University of Illinois.

Choose the right mentor

When I wanted to learn about real estate, I sought out a mentor with experience and success in real estate. Even having done one more deal than me is one notch higher on the success ladder.

It’s the same with any other business: choose your mentors wisely. It’s not mandatory that your mentor be a billionaire with more skills that Yoda. Rather, you want someone who is further ahead on the bridge you want to cross who is also supportive of your desire to get over the bridge too.

In my experience, this is one of the big reasons some people have trouble getting started in business. They take advice from people who have no business giving it. These people are often called “your family” and “your friends” and “your coworkers.” You need to stop their negativity right away. Tell them your intention and ask for their support or ask them to not say anything at all. Let them choose.

You’d be amazed at how many people out there provide anti-support and think they’re doing you a favor.

“I do believe in you Dewy. I just believe you’re going to fail” Mrs. Cox, The Dewy Cox Story

Just get out there and do it. If you want some additional guidance, try reading [Think and Grow Rich->http://www.davesaunders.net/blog/tgr/]. It’s probably the best book on business and personal achievement you’ll ever read.

Have you started a new business, or are you thinking about it? Leave a comment below.

I wish you all the success you can handle. 🙂

2 Comments

  1. Jennifer on October 26, 2008 at 12:24 pm

    I have been reading a lot about starting a new business in a recession and agree with you that someone with the determination and right frame of mind can be succesful for a few reasons that you have mentioned. (low overhead, no employees, outsourcing, using the internet to my advantage for marketing etc.)

    I am starting a company in property management, concierge services and cleaning in the Turks & Caicos Islands. My marketing strategy is value for their money. Property owners have to pay people regardless to manage their properties and provide cleaning and concierge services to their guests, so I am going in at lower prices than everyone else and guaranteeing that the customers will receive better service.

    Hopefully it all works out

  2. Karen Rands on April 24, 2009 at 2:53 pm

    In preparing for a radio segment about building businesses in a recession, I found your post. Terrific. I referenced it in my own blog post http://entrepreneurblogspace.com/2009/04/is-it-a-good-time-to-start-a-business-in-a-recession/
    Which also contains the link to the podcast from the radio show.

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