Is this a good time to set up a business

November 9, 2009

We appear to be in the last quarter of the worst world economic recession in living memory but market conditions are still very bad. Some of the larger economies have officially turned out of recession: the United States, France and Germany for example and some even avoided recession: China, India and to a great extent Brazil. So is this a good time to set up a business? There is as always no correct answer as whether this is a good time for you is very specific to your circumstances. However, there are a few considerations:

• Not all industries are as affected by recessions as others. For example, outsourcing has probably done well in the last two years. Is your industry recession proof, if so, then this may be the ideal time to strike out in business.
• Another issue is what markets are you trading into? If you are trading into markets that have turned out of recession then these are markets that should be seeing growth and opportunities for new businesses. Remember, over the past 2 years many potential competitors have failed and are no longer in the market and thus opportunities may be available.
• Do you have a specific market niche? Customers still need to buy essentials, even in a recession. So, if you have a specific market niche or expertise then you may still be able to generate sales and market growth.
• If, however, you are still looking to trade into a market that is still contracting then it may make sense to hold off just that little bit longer.

Overall, it is the product or service offering that you can present to customers that is more important than the general state of a market. Many competitors are by now battle weary after the hammering that most businesses have taken in this recession and a certain amount of positive mental attitude may at this moment be a unique selling point. But ultimately, it is down to you, your product and the market niche you can make that should be the deciding factor in whether to set up at the current time.

Always remember, we are at the beginning of an economic upturn. Are you going to be on the wave as it surges or will you miss this one? Well, that is down to you.

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