What Type Of Business Should I Start During An Economic Downturn?

With the current economic downturn there are challenges and there always opportunities. The biggest challenge when one is displaced or loses his or her job is: What am I going to do? It is a question I hear a great deal. Very often, the answer to the challenge is to start your own business.

You can read a mountain of information that will tell you about starting your own business. And, that is good. Yet, regardless of how much you read and learn starting your own business and running your own business present their own unique challenges.

Challenge #1: Do you have a market for the product or service you wish to provide?

Too often it is easy to fake yourself out by thinking that your passion and enthusiasm for a product or service will make you successful. Passion and enthusiasm are important ingredients in the success process but they are not a guaranty. Your first step is to know if you have a good market.

Challenge #2: Is the market I wish to pursue vulnerable to economic cycles?

If your product or service falls more into the category of being a "want" rather than a "need" then you are increasing your risk of failure. This is particularly true in less than robust economic times.

Challenge #3: What should I get into when in an economic downturn?

Answer #1: Honor "who" you are.

This is one of the key elements to doing well personally and professionally. One of the most critical elements of success is to be doing something that you like. You should be doing something in alignment with "who" you are. Burnout and ultimately failure, even if you are doing well for a while, will come if you are not doing something that gives you satisfaction and is in alignment with "who" you are.

Answer #2: Let your imagination loose.

This could be your time to pursue your passion or dream. Don't be bound by your education or your past. Use your past as a school to go back to and learn from. Don't use it as a prison to keep you from the future you desire. Question what worked. What didn't work?

Take some time to get reacquainted with yourself. Journal about what you want. Talk with others about your dreams. Get anchored in who you are.

Answer #3: Get into a service that is needed.

An example would be cleaning services that cater to business. Cleaning must go on regardless of cycles. Yes, there is a lot of competition. But, your new business can have a great number of advantages because it is not carrying high overhead or doing business in a manner that reflects a high economic cycle that no longer exists.

Cutting back is one of the most difficult aspects for a larger or established company. Very likely, you are in a position to provide the same or better service and at lower cost.

And here's another point about the cleaning business. It is for the most part, low cost and easy to enter. It doesn't take a lot of expertise. And, I can assure you that it can be very profitable.

Answer #4: If you have a particular area of expertise, find out where jobs are being cut in a particular industry where you may be of service.

In times of economic downturn employees are being laid off. But, the work still needs to be done in some form or fashion. There just isn't as much of it. Very often, these companies look more favorably to outsource this work. And you may be in a position to offer quality and save them money.

Answer #5: Provide a product or service that is needed and where you can save a company or individuals a significant amount of money.

Quality is always important but during economic downturns keeping costs to a minimum is king. A great example of a product and service combined that will save you a lot of money is Magic Jack. After initial set up your phone costs are around $19.00 per year. That's amazing. Yes, there is a lot of technology behind it but look for something that is needed and how you can deliver a better product or service at a lower price.

Challenge #4: What should I stay away from?

Be careful with multi-level businesses. Why? Many of them provide great products. The question is: Are the products necessary? Will the products truly save the customers money? If the answer is yes, then I would strongly consider it.

And, I would consider it if you are willing to contact a lot of people to make it work. But, during these economic times, if the products don't fall in the "necessary" category you should be more inclined to spend your time and energy elsewhere.

Stay away from get rich quick or businesses where it seems that you will have success overnight. Most of the advertising and promotion you read is based on someone's true success story. The piece that is missing is the percentage of people who undertook a particular venture and made it financially viable to where it could support them. Usually, this percentage is very low.

Obviously, there are many answers to what business should you start. The most important thing is to ask questions of yourself. Know yourself. Know your challenges. Understand your passions. Get a clear picture of the future you want to create. Once you have a clear picture of the future you want then what you need to do in the present, to attain that future, will become clear.