Starting a new small business in a recession

No, you’re not crazy for thinking about doing just that. Time has shown that many successful small businesses start-up during economic hard times. Why? Well, for one thing, being laid off after working for 20+ years means that you have skills and ideas and experience that can help you launch a new enterprise. Also, it can be easier to find vacant space for your storefront or office, and that space will most likely be cheaper than it was when times were good. Now is the time to negotiate longer term leases that will provide a margin of safety when the economy recovers and rents start to go up again. You also have more room to negotiate with your suppliers, since they need to move their inventory as much as you do. If your budding enterprise will need employees, you have many job applicants from which to choose.

Can you identify a niche product or service that is needed in your area? And now that small businesses can operate globally via the Internet, can that product or service be marketed beyond your area? Or, is there a product or service that you’ve looked for, but were unable to find? Maybe you’ve just tapped into a good idea for a business that needs starting.

Here are some ideas for small businesses that can do well in a recession, from About.com , from U.S. News and World Report, and from Entrepreneur.com .

The Evanston Public Library has some resources that can help, including the Business Plans Handbook for hundreds of sample business plans; DemographicsNow to research your target market (data only available for Illinois communities); and LexisNexis to find articles, company information and legal information. You can access these resources from any computer if you have an Evanston Public Library card, or you can visit the Reference Department on the third floor of the library to use them in-house.