Finding financing has always been a difficult issue for entrepreneurs, but the current state of our economy and the refusal of banks to provide any type of financing has made this an uphill battle. This is an unfortunate scenario since a down economy is actually an incredibly good time to start a business. While finding financing is more difficult, almost everything else is easier.
Now is an ideal time to find commercial rentals with lenient terms and low prices. Even better is it is a perfect time to invest in commercial real estate and get the double benefit of paying rent to yourself and having two investments, a business and real estate. Buying commercial property at low prices and historically low interest rates is a wise investment and possibly even one that banks will loan on “owner occupied property”.
Many resources are available for much cheaper. You can find used equipment, furniture and computers much cheaper and easily available on craigslist as other businesses downsize or close.
During periods of high unemployment you are able to have a large choice of talented workers who are eager for a job. Finding employees who fit with your organization and goals is easier when you can interview more qualified candidates.
A suffering economy certainly dashes optimism, but this can work to your advantage in coming up with a business plan. You will make your plans more conservative and grounded in reality which will serve you well in getting through the startup phase and can also make you much more attractive to investors.
The biggest reason now is great startup time is when the economy bounces back you will be ready. You will have the kinks worked out of your operations and will have more clearly defined your message and your target audience. As consumers and businesses begin spending you will be positioned and ready. You will have gained the confidence to run your business during a weak market which will make you infinitely better at guiding it when business ramps up.