Is now a good time to be thinking about starting a business? The answer depends on several different factors. The most important factor that one needs to consider when answering this question is whether or not you have the venture capital to do so. When the economy is in the throes of a downturn, finding the money to start up a new business can be difficult. Therefore, if you have a source of venture capital already in place, you are one leg up and ready to start a business of your own.
What Type of Startup Business Has a Chance?
While the economy might not be that great at the moment, there are several different types of businesses that are continuing to grow and find success. The truth of the matter is that people cannot be expected to give up everything. There are items that people need to survive, items that businesses need to grow, and items that people simply want.
Therefore, certain businesses are going to thrive while others are going to struggle. Plus, certain members of society can still afford to continue living at the same level that they have been living at. Consequently, these individuals can still afford to purchase whatever they want to have.
In general, businesses that can provide goods and services for reasonable prices and fees are going to fare better than their counterparts that are charging excessive rates and prices. In general, fast food restaurants and discount stores are hanging onto a fair share of the market. Additionally, businesses that provide a necessary service or essential commodities at reasonable rates are also surviving. Plus, businesses that cater to current trends in technology, learning, and social networking are also in a good place to continue thriving.
Tips on Becoming a Successful Recession Startup Business
In order to make a go at a startup business and succeed, the stage has to be set just so. In essence, all of your ducks need to be in a row and it’s best to get them there before you begin. Follow these simple tips to get started on your new business venture with a positive step in the right direction.
Venture Capital Tip
Make sure that you have the access to a source of venture capital. If you are one of the lucky ones who can still get a loan at an affordable rate, then that should be sufficient. If you aren’t going to be able to take out a loan, then make sure that you have the cash that you will need to function as a business for at least one full year and ideally two full years. Don’t rely on potential sales or business income. If you don’t have it, you can’t count it.
Do the research before you select the type of business venture or the location. If the area is already inundated with similar enterprises, you’re cutting off your foot before it even takes that first step. Check out how many others are already selling the products or service that you want to sell in a particular locale. Check out their advertising scenario. Assess their level of success by watching their clientele traffic for a week or so. If need be, switch the location that you are considering or tweak your business idea to an area for which a true need exists.
Beginning Business in a Small Way
Don’t over invest your money during the beginning stages. Start out small and work your way up. There’s plenty of time to amp it up once you get started. However, if you need to shift gears and you’ve already dumped all of your cash into the project, what are you going to use to adjust your plan? Exercise a bit of frugality and shop for your supplies and needs wisely. In fact, make a budget and stick to it so that you don’t run out of business capital too quickly.
What is Income Splitting and How Can it Reduce Your Tax Bill?
Self Employed? Do You Know What Your Tax Obligations Are?
How Can You Claim Expenses on a Business Loss?
What are Input Tax Credits?
Tax Strategies to Reduce Small Business Income Tax
10 Red Flags That Can Trigger a CRA Audit For Your Small Business
Common Income Tax Business Deduction Myths
How to Keep a Mileage Log for Business Vehicle Expenses