Posted on 03/04/2009 5:34:17 AM PST by mrmeangenes
I ran across this sort -but-interesting article today-written by JIM VERDONIK , a securities lawyer in Raleigh, NC, who does a great deal of new business startup work.
There is a lot of "gloom and doom" about business,but his conclusions may surprise - and encourage you.
(Excerpt ommitted for copyright reasons)
(Excerpt) Read more at bizjournals.com ...
I am opening a “American Hero” sandwich and pizza shop. Most of the equipment I can get for 15-20 cents on the dollar, a few months of free rent and there are no pizza joints where I am looking to operate.
Going to use whatever is left of my retirement savings and take a sho at it. Figure it is better then to sit home, send out thousands of resumes and not get any calls back.
If you have cash and/or backing, a downturn can be an excellent time to start a business.
I started a successful business in 1991; I was so ignorant of the “big economic picture” that I didn’t even realize there was a recession on! It didn’t matter.
I’m starting another one, right here, right now.
Remember: even 20% unemployment means that 80% of people are working. Many corporations (and households) are debt-laden and struggling; but many other corporations (and households) are cash-rich and investing! People *always* need good products and services.
Mike...you are so right. Here is pod cast on that very subject:
During the Great Depression of the 1930s a large portion of the world’s population suffered as inflation ran wild and unemployment reached epidemic proportions. But, there was a group of people and companies that actually flourished during the depression, thanks to smart and innovative thinking. With the weak economy nowadays, we can learn a great deal from these Great Depression Millionaires.
http://www.startupbizcast.com/2008/05/14/startup-bizcast-48-great-depression-millionaires-laura-posey/
I’ve actually been thinking along these same lines myself. If you can sell a few things that people are buying in a bad economy, chances are you’ll sell a lot more in a good economy. Another advantage is the fact that you can build a moderate inventory to get ahead of the game for when things improve.
On the other hand, if one has been laid off, it might be a good time to try your hand at something new like consulting or providing a service where you can use your experience.
Ping.
Good luck.
My mother bought a Coney Island type of concession trailer when she retired last year. It’s sat idle ever since but she’s already ahead of the game as far as licensing, permits and many supplies are concerned.
She owns it free and clear and pays minimal taxes with it sitting idle. Meanwhile, others all around are selling out because they can’t operate today.
It would be a wonderful time to start a business selling survival equipment and books on how to live off the land, or giving seminars for suburban daddies on how to hunt, fish, trap, camp, and take care of the family in the case of societal collapse. It would require a small capital investment to set up a website and get some equipment, but probably not much.
Regrettably, setting up any business requires a little money, and that’s something most folks don’t have left if they’ve lost their jobs.
That's a great idea! You can't let a good crisis go to waste, LOL!
Last July when the gas prices were soaring I had bought an old country store, refurbished it and opened it back up. We're very isolated here and it is over 25 miles to the nearest grocery store or town. I did great, initially, and daily folks were thanking me for opening the store again. (it had sat empty for nearly 15 years!)
Since the election my biz has dropped off by almost half. Partly because the fuel prices had come down and, imo, folks were suddenly shell shocked. (We're a red state and this part is darn near crimsom!) It's been a tough winter!
The only bright spot I can now see is that once dear leader's plans get really going, the gas prices will once again rise and they'll be more EBT (food stamp) recipients
in the area-maybe that will help me stay afloat, because I really enjoy this gig. But then again, he might just tax me out of biz. Weird times indeed.
That particular field (survivalist gear,etc.) is already dominated by people like the “9/11 Truthers” - and their latter day conspiracy theory clones.
Some of these folks are doing their level best to make a bad situation worse-because it helps their cash flow !
Apart from that, an astute comment !
>> That particular field (survivalist gear,etc.) is already dominated by people like the “9/11 Truthers” - and their latter day conspiracy theory clones.
That just means there’s an opportunity for an entrepreneur to leave all that junk aside and rebrand the concept to appeal to ordinary, rational folks! ;-)
To be honest, I don’t know much about it—I’m just getting into this stuff myself. But it does seem there would be a market niche for a knowledgeable person or couple to teach such things to suburbanites who are worried. The trouble is, of course, that most such couples have the sense to live in some country fastness already.
Another good point.
The best of luck to you!! People have to eat. Many restaurants are finding that people want take-out which avoids outrageous drink prices and tipping. If it’s good and you can keep the prices down you may well make it in competition with the chains.
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