Two weeks ago I asked you what the best businesses are to start in a recession.We’ve had so many great responses that I wanted to extend the voting by one more week.
I also wanted to share with you some suggestions from eHow on how to start a business during a recession:
Step 1
Write a thorough business plan. This document should include the focus of the business, marketing, revenue and other details. There are books and online resources available to help in this process. I’ve included some resources below.
Step2
Choose a business with low start-up costs. If possible, start your business in your home. Purchase second-hand or rent equipment or furniture. Investors are a more conservative in their investment opportunities during a recession, so you may not be able to find an investor for your business.
Choose a business with low start-up costs. If possible, start your business in your home. Purchase second-hand or rent equipment or furniture. Investors are a more conservative in their investment opportunities during a recession, so you may not be able to find an investor for your business.
Step3
Do industry research. Check out your competition and try to determine what you can offer that will make customers choose you over the others. Follow market trends. If more people are staying home because of the price of gas, perhaps you can launch a business that helps them make this adjustment (entertainment, food, home services, etc.). Also, what is the success/fail rate for your type of industry in your area? These are all things to consider. Stay sharp and in-tune.
Do industry research. Check out your competition and try to determine what you can offer that will make customers choose you over the others. Follow market trends. If more people are staying home because of the price of gas, perhaps you can launch a business that helps them make this adjustment (entertainment, food, home services, etc.). Also, what is the success/fail rate for your type of industry in your area? These are all things to consider. Stay sharp and in-tune.
Step4
Market aggressively. Make customers think they need your product. Be sure to give your marketing strategy careful consideration for optimal results.
Market aggressively. Make customers think they need your product. Be sure to give your marketing strategy careful consideration for optimal results.
Step5
Network. Join your local Chamber of Commerce or local industry group. You will find both customers and peers that will benefit your business.
Network. Join your local Chamber of Commerce or local industry group. You will find both customers and peers that will benefit your business.
Step6
Treat your customers like royalty. Go the extra mile for your customers. Your customer relations will encourage people to come back and spread the word about your product.
Treat your customers like royalty. Go the extra mile for your customers. Your customer relations will encourage people to come back and spread the word about your product.
What do you think is the best business to start in a recession? Please leave your feedback below so we can build the best list possible for young entrepreneurs everywhere who are struggling to get by and want to start a successful company despite the bad economy. The results are coming next week so please vote today!
Matthew Toren is an Award Winning Author, Serial Entrepreneur, and Investor. He Co-Founded YoungEntrepreneur.com along with his brother Adam. Matthew is co-author of the newly released book:Small Business, Big Vision: “Lessons on How to Dominate Your Market from Self-Made Entrepreneurs Who Did it Right” and also co-author of Kidpreneurs.
I’m thinking about a pet shop. Do ya think it’s a good aidea?
I commented on the post two weeks ago and wanted to leave an update. On my previous comment I stated that I was going to be starting a web development LLC. I actually just sent in the Articles of Organization form + fee the other day. Not sure how long it takes for that to process, but I can’t wait to get things going.
I already have my first client lined up. And I completely agree with the networking tip. I plan to join my local Chamber of Commerce soon. A good friend of mine started a similar business a while back and received a great deal of business just through connections from Chamber of Commerce meetings. Hopefully I will have the same luck.
And I do agree about creating goods or services that are demanded during a time when people may not be willing to drive or do other costly activities. Web development, that my LLC conducts, is a bit tricky since websites can cost a pretty penny, are not simple commodities and can be seen by many as unnecessary until times turn around.
Great information, but not sure whether or not during a recession is the best time for a start up. If you are going that route, I would say doing industry research is probably the most critical component. Understanding your market, where you need to position yourself, and what your services or products provide over the competition. There was a three part series on http://www.brandfasttrackers.com, that talks about starting off on your own. Worth the read.
you can start any business as long as you have the passion for it and creativity in terms of differentiating yourself.
[...] Evan Carmichael has a post with a similar theme on YoungEntrepreneur.com. In his blog he shares suggestions on how to start a business in a recession. For more information, click here! [...]
The easy way out is to think shirt-term and identify recession-resilient (nothing is ever recession-proof) opportunities. Staples people will always need. However, recessions are a great time to think long-term strategically about where the business world is headed. Take time to develop your idea and set yourself up to capitalize off the next upswing (or bubble, if you will). I’m not saying you should be the next dot-com craze or real estate craze, but rather think societal changes. For example, many of the millions of people now unemployed won’t be returning to work for someone else. THEY will become entrepreneurs. What will THEY need to succeed. Can you service them and help them? Go with the grain, not against it.
I think video game is pretty good business. It’s recession proof.
just get another jobs, never start on your business
I’m so glad I found this blog! I’ve been struggling trying to find worthwhile information geared toward young entrepreneurs, so these blogs have been nice to read!
Any time is a good time to start a business. You can always find a reason not to do something. If you’re passionate about what you do, it will resonate with your target audience. There is always opportunities for leaders to succeed. Sometimes too much thinking spoils the excitement. If it feels right take the chance.
If you fail – so what. Pick yourself up and try again. There are no guarantees, but the experience is well worth the effort. True entrepreneurs are invigorated by the challenges. Don’t look for recession-proof or any other protections because there are none. Every business can fail, and most new business do. But, if you believe in yourself and your customers – you will succeed. Build a winning brand, and enjoy the journey.
I plan on starting a home inventory business for my retirement. Well, actually I want to be up and running when I retire.
This appears to be a up and coming industry. I’ve done some research and it seems to be wide open in my area.
This is my first business venture and sites like this are a great resource.
Thanks
You can start any type of business as far you do extensive market research before starting to see if its viable to you.
Scratch your own itch! I think that’s the best business to start. For me, it was having a really tough time trying to find a good list of DVD displayed by release dates.
I have started webdevelopment business 2yrs ago now i added lot of services from hosting to domain .I thought bespoke application were in demand and recruited some developers and designers .I think when ever you start you should atleast understand the requirement in the market.
I would like to know to go about doing a research on a business idea. I’m currently inrolled in a community college and think about changing my major to business administration. I would be grateful for to information thank you.
I would say the best business idea is to cater to any one of the basic needs of a man. Especially food. I would prefer to open a virtual restaurant where one supplies only selected food items categorized based on time (breakfast, lunch and dinner) and specialize in taste and delivery with competitive cost offering. This will create a niche market share over a period of time and of course marketing is key here with lot of offers. Accepting meal passes will to improve the business
Thankyou
I have just recently acquired 57 acres of land in mississippi? What should I do with it?
There is so much you can do with that amount of land and I certainly would not sell it …not now. If you are the type of person that likes farming …maybe an Organic farm would work on as little as 57 acres. Or maybe you can grow herbs…these, of course, depend on how many of those acres are cleared for farming. There is always the option of renting the cleared land to a nearby farmer or like a friend of mine owns 50 acres in MN and he sells hay to a farmer for a yearly fee.
Do some research and decide how much time/effort/money you would be willing to put into this land…maybe some recreational sport such as an outdoor paintball course would work for you.
Here’s something fun for Halloween grow a pumpkin patch and some gourds to sell and then have a Haunted Hayride!…lots of fun. Or you can do themed Hayrides such as Winter hay rides….horse drawn or tractor. They could be themed for all the Holidays. Don’t let yourself be limited.
This could be the prefect business starter.
If none of these ideas appeal to you …you can always sit on it for the next 5-7 years while the housing crash rebounds and then sub-divide it….why do that when you can make money while you’re waiting for the economy to bounce back.
Hope this gets your imagination going…..good luck.
I just started a marketing agency. The focus is guerilla tactics that allows customers to get the most from their marketing budgets. The majority of our focus will be on e-strategies, including social media, because that’s where the value lies. You have the ability to reach millions of people for minimal dollars. There is also the possibility of going “viral” with your messages.
Best,
Ryan
http://www.squidoo.com/catalyst-marketers
for tarsha and your land. i think you can put cows on that land. no need to buy hay and good profit later on.
I would say… instead of putting cows on that land, I would make a lil more investment and put some deers on the land…. and then let the hunters pay you your profit…! howwwzzzz that?
as someone said opportunities are always there, but what matters how we take those opportunity, how tightly we grip it and move forward.
Keep it until the economy gets but you may be able to get more money for it but the best way to get profit is for you to build on not sure what you can invest right now but you may be able to get an invester that is an great quantity of land.
Liked your answer — has given me something to think about. I have had a small publishing/advertising business for many years and also am Director of a nonprofit working with special needs young adults. We are self-supporting and I usually have a project in place that pays our bills (i.e. published a family recreation magazine for 7 years until printing became too expensive). I desperately need to come up with some new idea to raise funds both for myself and our nonprofit. Any suggestions will be greatly appreciated!!
Thank you for your time!
Connie
My daughter,aged 19 has followed the advise you have given above and she has began her business this week, Im from a medical and not a business background so Im not too sure what you mean by “marketing aggressively”, could you give me some depth on this area for me to pass on.
My daughter is hiring out designer handbags.
Grow Wheat..Whole grains is where it is at these days..I sell bread i know
Hello Everybody .. We i am into outsourcing business since last 3 years and in this industry since last 5-6 years .. i gues this is the best industry to start the business but you to define your area of work in this industry like web development, software development,legal process outsourcing etc ..
Regards
Nilanshu khanna
I know the question is specifically, “what business to start” however please afford me a little latitude in addressing that. If you’re looking to start/run your FIRST business you should buy one. Starting off from scratch means you have 0 customers, 0 name recognition, 0 revenue, 0 systems, etc. etc. etc. More importantly, you have to learn nearly everything from accounting, taxes, legal issues, marketing, sales, customer service, payroll, etc. etc. etc. all at the same time. It’s a lot to absorb.
If instead, you buy an established business for cheap (with little to no money down) and improve it, you can learn a lot while still making money, connections, and building equity to set you up for your start-up. In this economy there are PLENTY of good deals to buy existing businesses.
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I have come to learn a lot from this Blog.Fact is,in South Africa as it is,I believe the business to start up during the recession,is the Club environment ( Night Life). A lot of folks happen to be out every weekend and I believe there is a lot of Money there,Just need Investors though.I believe the 6 keys you mentioned are extremely important.I’m also a CEO of a Communications Company( Especially all Graphic Designing Works),Run few Deli’s,Also have a Property company ( Sales & Rentals)of Myself and have learned a great deal by Networking,planning,satisfying my clientelle,It works a lot,Thanks for a great bLOG. Best regards
David Kwinda
At last, I found the right place to read some quite interesting stuff, thanks for sharing.
I am thinking of starting a business in a rural family oriented area. I have 2 teenager sons that can help. I have no idea what to open. Any ideas? What about a coffee shack? Or used game store? or ????
I’m thinking about small gadgets shop on the internet?
what do you think?
is it dificult to get traffic ?
@jonas: You’ll be in a segment with a lot of competition, but it’s not impossible. If you can find a niche within that sector, you’ll have a better chance of making it. Is it difficult to get traffic? No, it’s not difficult, it’s just a process that takes time, dedication and focus. It won’t happen overnight, but if you stick to it and follow advice on this site an other resources, you can make it happen.
Best of luck!
John
thanks you nice share web site..
Thank you
listen to music/ Teşekkür ederim.
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