Dec 15 2008
Got a Great Idea For A Business?
We had a death in my husband’s family, and since Hubby was on the road, he decided to take a bus back home to attend the funeral. He was as determined to make it home as I was to get him to understand that there was a blizzard between him and that funeral. In the end, he made it to a town about 45 minutes away, then called for us to come and pick him up.
Did I mention the blizzard?
At one point in the storm, the wind slowed, the visibility improved, and my sons and I set off to go get the Daddy Unit. Funny how those storm improvements do not last long! But we made it home with no mishaps, perhaps because we only encountered serious difficulties for the last half of our trip.
Entering a business during a recession is a bit like that. Even in the best economic times, starting your own business is risky. For those of you who didn’t know, only five percent of businesses make it past the first five years. In the next five years, the majority fail of those who survived the first five! Not very good odds.
That’s not to say that you shouldn’t open a business. I think anyone who can get the tax benefits of a business, or the extra income, or the satisfaction of working for themselves deserve to grab the golden ring. But be prepared that successful businesses are rare, and rarer still are the good bosses. Also, keep in mind that starting a business during a recession had better be bulletproof. If there’s little money to be had, it’ll be tough to find people putting it in your pocket.
Let me give you a couple of examples. Over thanksgiving, our nephew told us about his insurance business. He started with several other men the same year in the same business. Today he is the only one of them left. How did he make it when the others didn’t? Simple. He worked part time while his business was growing, while his colleagues had to make it their primary paycheck. They couldn’t handle the lean years. Not only that, but he meets yearly with each client for an update about their needs. Customer service is critical to him, as it should be to any business.
There are a myriad of other reasons that some businesses make it and others don’t. One is luck, the other is advertising, another is the need for the area. It’s like the hero’s saying in the movie “Robots.” He says, “See a need, fill a need.”
But for all of those great ideas, think twice about starting that new business in a recession. If you aren’t going to be living on the street because of the chance you take, then it might be worth it. If, however, you will hurt yourself so badly that you will be too shy again, wait perhaps for a break in the weather. Sunnier days always come again.
