Starting a new business

[oceans]

Is this really the worst possible time to start a new business in this doom and gloom economic climate? I have an idea about a product that I believe is pretty good but am really not sure if I should proceed with it right now. It is a innovative idea on an already existing product (ie not 100% innovative) and I have done my research and there is nothing like it out there. Any thoughts?

[Jexley]

I'm not really one to don a tinfoil hat and yell that the sky is falling, though I'm not one to discount that some folks go through some tough times when the economy is poo.

For my money though, I say that if you've got something good, go for it. Timing may have a lot to do with it, but that can all depend on what you've got to sell.

Again though, if you've done your research and think its viable, why not go for it?

Good luck!

[ray_223]

Hi Oceans,

No one can ever tell if a product will sell or not. You could even go into details on here about your product or service and some people may come up with some great predictions.

BUT, the only way to know is do it.

My advice would be to get some form of your product or service in front of "would be" consumers as quick (and as least expensively) as possible.
It doesn't need to be full featured from day one.
Only feedback from consumers will prove or disprove your ideas demand.

Good luck

[Burgo]

Yes......get out and test your market and you can the guague the reaction.

No time is good to start a business if you have doubts.

Anytime is the right time to start your business when you are comfortable with what you have and confident you will succeed.


Ther is only one way to find out GO FOR IT

[LeelaCosgrove]

As the guys said, you need to do your research and test the market ... a lot of it will come down to the kind of product you are selling.

Luxuries are really taking a tumble at the moment (minus alcohol, which is going through the roof) - but people won't stop spending money on the things they need.

And really, that's the key to selling anything - you need to stop it from looking like a luxury and make it so important to the client to buy it that they'll do so regardless of the state of the economy.

Sure, it's easier to do when everything is fine - but not THAT much easier.

[linkartist]

I don't know if there is ever a 100% right time to go into business. As long as you go in with realistic expectations, that its going to be a hard slog, that you might want to tear your hair out and quit -- I don't know whether external factors really have THAT much impact.

For sure, its riskier now, and yes it depends on how people are buying... like Leela said, people are not buying luxury goods like they were... but I guess I see it as it never being EASY to start in business, so why not get the hard bits over with as soon as possible.

There can be benefits to doing it now, in that you may have to work a little harder on your marketing skills, or put practices into place that are more sensible... I started in a boom and that made me complacent in many ways, so I can see that maybe there are benefits to jumping in.

I guess as long as you plan for the worst case scenario, you can't go wrong? Best of luck

[ActiveCounselling]

Hi,

the advice listed so far is excellant, market research is critical and also positioning the product to be less luxury would help.

Another angle to take on this is to think about what level of risk you will be taking. Many of the Soloists on the site start their businesses while still working part time, this ensures at least some income while they work on the new business. Therefore reducing the risk.

You obviously have concerns so make sure you deal with those concerns before starting. You need your head in the game and having these worries hanging around with no plan to deal with them is one way of distracting and demotivating yourself.

My recommendation is do a business plan but also include in it your worries and how you plan to deal with or minimise those worries. Plus a contigency plan would be a good section to include in the plan as well. Ask youself questions such as:
1. Can I fund this business for up to 2 years if it takes that long to build
2. Can I fund the business if it takes off rapidly and you need extra stock etc
3. How do I manage my time if I work part time elsewhere
4. What is my exit strategy if it does not work out

By planning for various levels of success (not just the bad stuff) you can help keep yourself realistic and your feet on the ground.

One big thing for new businesses is over excitement. They see a bit of cash coming in and start buying new cars, offices, laptops etc. In tough times you need to keep your overheads low and having high lease and interest payments are overheads you don't need. This is especially so when you have concerns over the economy and how your startup business will go.

Do your research and planning, analyse the results and make your decision!

Hope that helps, it was a bit longer than intended but that's how it goes sometimes.

Good luck,

David

[linkartist]

Originally Posted by ActiveCounselling

One big thing for new businesses is over excitement. They see a bit of cash coming in and start buying new cars, offices, laptops etc. In tough times you need to keep your overheads low and having high lease and interest payments are overheads you don't need. This is especially so when you have concerns over the economy and how your startup business will go.

Hear hear.

The WORST thing I EVER did was get overexcited and buy a new car on finance! *smack*

[gregpritchard.virtualcio]

I've had this article bookmarked since it was written. On the money! I re-read it occasionally as sage advice.

http://www.paulgraham.com/badeconomy.html

He has a Venture Capital / Technology startup perspective, but the principals are universal.

[MissieK]

I've found the best way to do market research is to get in front of customers and see if your product/service sells.

Re luxuries - it depends on what your definition of luxuries are. During the Depression, cosmetic & skincare sales went through the roof!

Melissa