Ironically the opportunities for starting a successful business in a recession are huge. Indeed, famous companies like apple, Microsoft and face book were all started in a recession.
However, before committing to starting your own business you will need to first of all ask yourself whether you will be suited to becoming your own boss. You will need to research what will be involved with running your own business to see if you have got what it takes to cope with… no guaranteed income, lots of hard work at the beginning, no spare time for family and the stress of controlling your own financial destiny and so on.
If you decide that you have what it takes then the following points will help you to succeed:
Write a business plan
Writing a good business plan can make the difference between your business succeeding or failing. Not only will it detail your objectives and goals but it will also help to convince potential lenders to have the confidence in your idea to lend you money on the strength of your proposals.
Many banks, if they feel confident with your business plans, will sometimes also offer what is known as a facility, which is an amount of money reserved for you that can be taken as and when you want. The advantage of this is that you will then only pay interest on the money that you have actually used which can be a massive help financially when you are starting off in business.
Research Your Business Idea
Carry out thorough research on your business idea. Find out what your competitors are offering and think how you can offer better.
Examine who you think your target audience are? Young, old, the lifestyle they have and why will they want to buy from you rather than your competitors?
Keep start up costs down
Try to keep your business start up costs low in order to keep as much spare cash as possible as a cash flow for your business.
For example do you need to go to the expense of having office premises or could you just as easily run a business from home operating from a spare room in your house?
Talk to H M Revenue and Customs who will be able to offer valuable advice about tax issues that may be able to also help you to save money.
Make sure that you have a good bookkeeping system.Good bookkeeping can keep track of your business progress from the onset. Make sure that you keep all receipts and invoices, even ones from before setting up your business if they relate to your business.