Is now a good time to start my business?

by | Mar 19, 2021 | Business Law

With the recession and poor economy that has affected the country for the past year or so, there are doubtless many would-be entrepreneurs around Sacramento County who have put off starting a new business. But that can be a mistake.

Some of the biggest companies in the U.S., including Uber and AirBnB, began during a recession. Even if you are not interested in building a company as large as those, you can take heart that if the founders of those businesses could do it, you can too. Here are some tips for starting a new business in difficult times like these.

Adaptability is key

As the economy changes, so do people’s spending habits. For example, homeowners may be less likely to buy a new HVAC system during a recession. A company that can shift fairly easily from sales and installation to repair is more likely to survive. Consider how you can set up your new business so that it can change and adapt rapidly if necessary.

What bothers you?

If you are still in the ideas stage, think about this: what is something that bothers you that there is currently no solution for? Can you think of a service or product that would solve the problem?

Don’t reinvent the wheel

Often, the best ideas for a new business are not completely new, revolutionary ideas. They are small tweaks to existing business models. Think of it this way — instead of having to turn an industry around 180 degrees, try to think of an idea that shifts the industry five to 10 degrees.

Employees may be optional (at first)

As your business gets off the ground, you may not need to go through the hassle and expense of hiring employees. Instead, you may be able to hire people on a contract basis to complete short-term projects.

If you are considering starting a new business, legal advice from a business attorney can help you protect yourself from liability and get things off on the right foot.