WORKING LIFE
Starting up
Tips for launching your business idea during a recession
Last Updated: Friday, February 20, 2009 | 4:46 PM ET
CBC News
WORKING LIFE
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- Feb. 9, 2009
- Life changes: finding satisfaction
- Feb. 2, 2009
- Living in the moment
- Jan. 30, 2009
- Fitting a healthy lifestyle into your busy day
- Jan. 22, 2009
- YOUR VIEW: fitting fitness into your hectic life
- Tips for launching your business idea during a recession
- Jan. 12, 2009
- YOUR VIEW: How do you define 'work-life balance?'
- Dec. 10, 2008
- YOUR VIEW: How do you define 'success?'
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- IN DEPTH: E-mail etiquette
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- IN DEPTH: Mindfulness meditation: contemplating your way to lower stress
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- IN DEPTH: Making the grade: Top Canadian workplaces
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- PHOTO GALLERY: Corporate volunteerism
VIDEO
- Hanging onto your job: tips on making yourself indispensable to your employer (2:37)
- Feb. 9, 2009
- Life changes: finding satisfaction (4:27)
- Feb. 2, 2009.
- Living in the moment: Eckhart Tolle (4:55)
- Jan. 30, 2009
- Fitting fitness into your hectic life (4:33)
- Jan. 22, 2009
- Tips: starting a business during a recession (3:48)
- Jan. 12, 2009
- Greening your diet (3:51)
- Jan. 5, 2009
- Work-life balance (3:59)
- Dec. 10, 2008
- Malcolm Gladwell on success (4:39)
- Dec. 3, 2008
- E-mail etiquette (4:32)
- Nov. 26, 2008
- Mindfulness meditation (4:42)
- Nov. 19, 2008
- Tips: becoming aware through meditation (2:29)
- Nov. 19, 2008
- Great Canadian workplaces (3:53)
- Nov. 12, 2008
- Corporate volunteerism (4:10)
- Oct. 29, 2008
- Marcus Buckingham: tips on finding success (9:22)
- Oct. 24, 2008
So you hate your job and want to start your own business. Or maybe you've lost your job and are tired of relying on someone else for a paycheque. You want to control your future, be your own boss.
But is it a good idea to set off on your own when the economy is in the dumps?
There are 30 companies that make up the Dow Jones Industrial Index. Of them, 18 were launched during tough economic times.
They include:
- Johnson & Johnson
- Caterpillar
- McDonald's
- Walt Disney
- Adobe
- Intel
- Compaq
- Microsoft
- Chuck Schwab discount brokerage
- Sun Microsystems
In a recent column in the magazine BusinessWeek, Vivek Wadwah, an entrepreneur and educator, said there are four good reasons to launch during a recession:
- There is less competition.
- Costs can be lower because it's a buyer's market for real estate, equipment and labour.
- It can be easier to recruit new employees because people who have been laid off are eager to find new jobs.
- There is less pressure on you to expand your business. You don't have to worry about fighting with other companies for market share.
Dianne Buckner, the host of CBC TV's Fortune Hunters, says the big question is trying to figure out if your idea is one that will catch on. She offers these tips on starting out in tough times.
Do your research
You have to figure out who your competition is, what they are offering and what is it that makes what you're offering different.
Secure enough funds
A lot of businesses fail because they're undercapitalized. It's hard during a recession for many people to borrow money from a bank — and this time, it's even harder as banks have tightened lending rules. But most startups don't get their financing from banks. Research shows that most first-time entrepreneurs get their money from personal savings and loans from friends and family.
Get creative with your marketing
It's very expensive to buy advertising but you can do your own marketing — a lot of experts are telling us about guerrilla marketing. That means doing things in a more creative way — online, for free.
Be prepared to work hard
There is no substitute for hard work — that's especially true when you're starting your own business. You may have to put in long hours, work weekends and forgo holidays in the short term. But you'll be your own boss and may be able to provide jobs for family and friends. And maybe even weather a financial storm or two.
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