[hope_full]

This is a serious question. I have a dandy small business idea that would do well, even in the midst of a significant recession. But it'll take a few thousand dollars to start the business.

Payback would probably be less than 90 days and then it'd all be profit. My monthly recurring expenses will be almost nil, as it'll be a home-based, service-oriented business. I'd be - for now and probably for a long time - the only employee.

My question is, based on what's happened so far in our economy, do you think this is a good time to drop $4,000 into a new business? Would you take the gamble? I'm a little tiny bit worried that in 90 days, the economy may be in a bigger mess. I'm a little bit worried that in a year, the economy may be in an even bigger mess. I'm wholly confident that my idea is a GREAT one and in a moderately stable economy, it'd serve me very well and become quite profitable (over time).

Do y'all think it's possible that we could emerge from this financial mess in 2010, having weathered yet another icky, severe but survivable recession?

Thanks for any and all suggestions and advice. I've owned several small businesses through the decades, but I've never started a new business when looking out over the ocean and watching the dark skies form, heralding the approach of a "perfect storm."


Hope

[Jotapay]

If you can make a living and save some money in these rough times, I would definitely go for it. $4K is a really small investment for good, sustained income.

[centralstump]

This is a serious question. I have a dandy small business idea that would do well, even in the midst of a significant recession. But it'll take a few thousand dollars to start the business.

Payback would probably be less than 90 days and then it'd all be profit. My monthly recurring expenses will be almost nil, as it'll be a home-based, service-oriented business. I'd be - for now and probably for a long time - the only employee.

My question is, based on what's happened so far in our economy, do you think this is a good time to drop $4,000 into a new business? Would you take the gamble? I'm a little tiny bit worried that in 90 days, the economy may be in a bigger mess. I'm a little bit worried that in a year, the economy may be in an even bigger mess. I'm wholly confident that my idea is a GREAT one and in a moderately stable economy, it'd serve me very well and become quite profitable (over time).

Do y'all think it's possible that we could emerge from this financial mess in 2010, having weathered yet another icky, severe but survivable recession?

Thanks for any and all suggestions and advice. I've owned several small businesses through the decades, but I've never started a new business when looking out over the ocean and watching the dark skies form, heralding the approach of a "perfect storm."


Hope

There are things still being bought. There are services still being rendered. A good idea is still a good idea.

Since you've had businesses in the past, you know to remember the caveats and cost them in:

1. You are responsible for your health insurance.
2. Self-Employment taxes can be a shock to the unprepared.
3. No one is contributing to your IRA/401K unless it is you.
4. There are no sick days or vacation.

Those are off the top of my head. I had fun running a small business. Mine ultimately failed, but I wouldn't change a thing.

[RonMN]

I've been pondering this question for about 6 months now. I was investigating vending machines, but crossed it off my list as there would be alot more smashing into them as the economy worsens & people are hungry.

Thought of a convenience store, but robberies & theft are sure to rise.

Lately I've been looking into a rental kitchen (I would rent out a commercial kitchen by the hour/day/what-ever). These alreay exist but I can't find any in Minnesota so this may be a viable idea. Still investigating it.

I have to say, if all you stand to lose is 4K & you have alot of faith in your idea...I say go for it. That is a pretty minimal investment.

[blukatzen]

Lately I've been looking into a rental kitchen (I would rent out a commercial kitchen by the hour/day/what-ever). These alreay exist but I can't find any in Minnesota so this may be a viable idea. Still investigating it.

Why not try out a big church/school basement, *if* they don't have a rider on thier insurance aganist other parties coming in to use their kitchen. You may be able to put one in,but be prepared to pay for it! All kitchens that are church/school-oriented are/should be NSF, which YOU should be as well.

The only thing to dicker on is whether they will let you use all of their kitchen tools, or whether they lock them up and you may have to bring in some of your own, whilst using only big things like mixers, etc. Cleaning is another stipulation as well.

You also may have to vacate the time around their festivities, or events. (which is understandable.) But having an NSF kitchen is a good thing, which most start-up caterers, etc. cannot afford right off the bat.

Blu

[AAA]

If you have a good job right now that pays well, provides insurance, provides retirement benefits, etc... I would wait until things start to recover a little.

Not to discourage you but 90% + of small business start-ups fail in the first year.

The big problem is if your business fails (either because it is not needed or is needed but people can't pay for your product or services right now) then you will be one of millions of unemployed persons looking for jobs.

One quail in hand is better than a covey in a mesquite bush.

[jdmartin]

Depends on what you're going to do for income in the meantime. If you have a spouse that makes enough for you both to get by on, or you don't have a job right now anyway, or you have a rich benefactor, or you're going to do this in your spare time, then $4k is really not a whole lot of money to drop on something.

If you're going to be depending on this business to feed you I'd say forget it - most small businesses do not reach profitability until easily a 2nd or 3rd year, which is why most fail in the first year - the owner(s) expect to draw a salary off the business on top of expenses, and there just isn't enough money to do that and grow/advertise/etc.

If it's a really good idea, and you already have a job, why not do it on the weekends? If you run a small business full-time you're going to be working 7 days a week anyway to get it going, so why not give it a test run on your off days? If it falls, you're out nothing but your small investment.

[RdSnt]

If you really want to own a business give it a few months and people will be asking you to take their's for nothing, "Please".

[Quinny]

Forget it.

[Ludi]

Can you start and run the business while continuing to work at your current business? Don't put all your eggs in one basket if you can help it. Start your new business and see if it can support you before you quit your current business, or if possible, continue to work both of them indefinitely.

I'm very strongly in favor of self-employment, being a business owner myself.

If you can afford to lose the investment in time and $$ without endangering your long-term goals, I say, go for it.

[dohboi]

To paraphrase the song "New York, New York":

If you can make it now, you'll make it any time.

People who start businesses in downturns are more likely to be much more disciplined in their approaches to money...than those than start them in the gravy days. If you make it through the hard times, you are much more likely to do well if the economy improves.

But notice that there are two important "if's" in that sentence.

[AAA]

I think it is a good idea to get some input from corporate workers and business owners on the advantages and disadvantages of each. Please visit Slave Worker or Business Owner and give us some input about your experiences.

[davec67]

Best business to start right now is a pawn shop

[jdmartin]

PS: This sounds like a job selling cocaine.

[Jotapay]

Best business to start right now is a pawn shop

Not a mortuary? How about a gun runner?

[Ludi]

mortuary? - too expensive

gun runner? - too dangerous

[bodigami]

I say go for it... it may even bring some hope to "doomerism".

Just don't put all your savings on that investment.

[hope_full]

Thanks for all the thoughtful replies. It's always scary putting unspent dollars into a new business, but I'm confident this investment is sound, wise and has the potential to make me a few bucks.

And to those who asked, it's 100% legal. Sheesh.

I'm too much of a scaredy-cat to do anything illegal. Always have been.

Frankly, I've been a little depressed lately, thinking about what's lurking in our collective future. If America were a business, we'd have been closed down by now by our angry creditors and the doors would have been padlocked by the IRS.

I wish I knew what was on the horizon for our once-great country. Those riots in Paris and Iceland don't bode well for us.

Hope_Full