It has been well reported that the global economy is a bit sluggish. While the economic downturn has affected Wall Street, major corporations, and a lot of the manufacturing sectors, what does it mean for entrepreneurs? Does a slow economy breed a certain climate for small businesses? While conventional wisdom would indicate a strong economy makes for the best hopes for entrepreneurs, there’s no reason a recession means that there’s no hope for a small business.

According to some people, a recession is the BEST time to start a new business. There are a few things to consider:

<strong>Less Competition:</strong> During a recession, most businesses are looking at every opportunity to cut costs, personel, and budgets. For the same reason, they’re usually NOT spending money on innovation, new ideas, or unproven concepts. An entrepreneur with a solid product could easily take a risk and fill a void left by a timid competitor. At the same time, many other potential entrepreneurs will be unwilling to take such a risk during a time of economic slowness.

<strong>Technology is Key: </strong>In this day and age, many potential start-ups are technology based. That can mean either of two things. One, because of the nature of the technology, early costs will be prohibitive. Or two, because of the nature of the technology, the costs will be minimal. If you can be in the second camp, your start-up costs will be low, and you’d be taking much less of a risk. Social Media, for example, is an industry with potentially low start-up costs. Facebook, Twitter, YouTube, etc., are all freely available. If you could base a business around that, now would be a good time. If your business is not technology based, then the same rules still apply. Keep your start-up costs as low as possible to minimize your risk.

<strong>Network, network, network: </strong>Some things don’t change with the economy. People still like to talk and interact, and they certainly like to offer business to those with whom they have an established relationship. The difference with this recession compared to previous economic dips is that thanks to social media and the landscape of small business, networking is cheap/free! Using social media, camp-style meetups, and other networking opportunities, this recession is far more friendly to small businesses than previous downturns.

Regardless of the status of the economy, small business start-ups need to keep their costs low (if possible), know their industry, and take a chance. Risk is a part of entrepreneurship, but during a recession, sometimes there may be less to lose. It’s worth a shot, and College Pro Painters will give you the tools you need to get started.

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