Are you a stay-at-home parent who doesn't want to go back to the workplace? Someone who was fortunate enough to retire early? Or just someone with a great business idea? Don't let bad economic times deter you from starting your own business. Experts claim that starting a business in a recession can be a good idea. In fact, many successful companies have gotten their starts during economic downturns.
So what makes a business succeed during a recession? Here are five reasons that starting a business during a recession might be right for you.
1. You have a Sizzling Idea
There are lots of red-hot ideas, but finding one that can make you money in hard economic times is a different story. Think about how your spending habits have changed when times are tough. Do you shop online more so you can easily comparison-shop and save on gas money? Are you a parent who sees the need for eco-friendly baby products and clothing? Are you sending more e-cards than paper cards? Do you have an idea that answers the needs that arise during tough economic times?
2. You have an Excellent Credit Rating
If you have an excellent credit rating and low balances on your credit cards, banks will be knocking down your door to get your business. Take advantage of that to negotiate 0% financing on a loan or credit cards to use for start-up capital.
3. You have Out-of-This-World Negotiating Skills
Negotiating deals at the bank is somewhat dependent on a good credit score, but even if you have less-than-stellar credit, you can get a loan with favorable terms. If you're skilled at negotiating deals, and have the chutzpa (and a marketing plan to back up your business idea), then there's a good chance you'll walk away with exactly what you want.
4. You are a Money Manager Par Excellence
Are you able to make ends meet despite being on a shoestring budget? Are you the one your friends come to for financial advice even though they make way more money than you do? Then you're probably pretty good at managing your money, a must-have skill when starting any business, but especially one during a recession.
5. You are Disciplined and Detailed
If you're the type of person who's disciplined, thorough with details, and not prone to making impulsive decisions (money-related or otherwise), then starting a business during a recession will probably be a successful endeavor for you.
The bottom line is that if you're ready to start a business, don't let a recession decide whether it's a good time or not. If you've got what it takes and the right mindset, the time is now. After all, good ideas are always in demand. If you're ready to get started, click here