Tips for Starting a Business In a Recession

The high risk of failure during recession requires that the startup costs are kept as low as possible. Businesses that start and survive during a recession are in the best position to take advantage of the inevitable economic upturn. Businesses that postpone launch until the economy shows signs of strengthening are that much further behind, and give a head start to competitors who took the risk of starting during a recession. Keep starting costs low by:
• Keeping your day job. If you're lucky enough to still have a job, try starting your business in your off-hours. You'll have the steady income from your existing job to pay your living expenses and can focus on making your new business profitable without the risk.
• Not buying, leasing or renting office space. Most businesses can be started right from your home. Don't waste money on an office space or retail storefront before absolutely necessary. Use your kitchen table, home office, basement or garage as office space. Some businesses will never need to venture outside the home.
• Not hiring employees. If you need help from other people, use contract workers and issue 1099s instead of hiring employees.
• Not wasting money on advertising. There are countless ways to advertise your business, product or service without spending money. If you--the maker of your product or provider of your service--can't sell yourself, no one else can, either.