Starting A Small Business In a Down Economy Is Actually A Smart Idea

According to Rieva Lesonsky of the Huffington Post (February 2009), “There is one silver lining to the economic misery surrounding us -- more Americans are likely to start their own businesses this year. While that may seem counter-intuitive, it actually makes sense. After all, the corporations and companies that have laid off millions of people, aren't going to start hiring anytime soon.”

While people fear opening up a new business in a bad economy… I agree with Rieva Lesonsky that it a silver lining to the gray cloud many are seeing. Throughout history, many very successful businesses that were founded during a down economy, have prospered, and are still around today. We have actually seen a surge in growth and qualified candidates over the past several months. We are continuing to open new studio locations as well as our on-location event home-based franchise. As unemployment rates continue to rise, people are searching not only for jobs, but for opportunities. When very few people are hiring, starting your own business can be one of the most practical areas to venture into… depending on what business you chose. There are a few different factors that a down economy actually helps when it comes to starting and operating a business.

The talent pool is large. Finding talented new employees eager to work with a growing and exciting new business is a much easier task. It is easier to recruit extremely talented and determined people. As a franchisor, we find a wonderful group of potential franchisees who are excited to come aboard. Our franchisees are also finding great new employees at their specific locations to help lend a hand.

Real estate costs are down. Looking for a new business location can be very thrilling, as is getting great deals and a great value for your dollar on real-estate. We are finding that landlords are willing to negotiate and contribute more than we have previously ever seen.

Many expenses including marketing are lower. Costs for almost all business expenditures are down during this economic recession. While you can get products and services at lower prices, you get to develop and build relationships with vendors that can be long lasting.

Venturing out on your own may be risky when your job is stable, but with lower paychecks and constant layoffs, this is a great time to nourish your entrepreneur calling. There is not much job stability in today’s marketplace.

We are looking for entrepreneurs who are looking for a new adventure and fit in with our corporate culture. This is a perfect time to be the one capturing and creating the smiles as a Franchisee.

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