Starting a Business During Economically Perilous Times

 Have you ever thought of starting your own business?  Most of us have at some point in our lives.  Maybe you have been laid off and, with the difficult job market, starting your own business seems like an attractive alternative.  But even if you have a promising business idea, can you start a successful business during a recession or slow economy?  The answer is yes – just look at the number of big companies that started during economically perilous times.
HP began in a Palo Alto garage at the end of the Great Depression and now operates in almost every country in the world.  The oil crisis during the early to mid-1970s saw startups like Fedex Corp. and Microsoft Corp.  More recently, Groupon was founded in 2008, and data storage company Isilon, started during the dot-com bust, recently sold for $2.5 billion.  In fact, about half of all Fortune 500 companies started during a recession.
So what’s the key to starting a successful business regardless of economic conditions?  How did these companies prosper when others were cutting back or closing their doors?  It can’t be done without hard work, of course, and a keen eye to identify a market niche you can fill.  Another key to success that is often overlooked is the ability to sell yourself as well as your product or service.  Self-promotion is an essential skill in today’s competitive landscape.
If you are promoting your new business product or service, you are essentially selling yourself at the same time.  Customers and investors will want to know you are competent in your field, knowledgeable about industry trends and activity, trustworthy, and likeable.  An important consideration when developing a strategy for self-promotion is to look at your experience and skills as well as where you are most comfortable and what you enjoy doing.  For example, if you enjoy writing, you could send out a regular newsletter which includes information about your new business.
Jerald Schneider is a Certified Public Accountant providing tax, accounting and financial advice for more than 25 years.  He can be reached at 661-297-1072 or by e-mail at jerald@jeraldschneider.com.