Men's Life Today: Career

Starting a Business in a Tough Economy

By Thomas P. Farley For Men's Life Today

Whether you’re unemployed, underemployed, fearful of a layoff or just bored with your job, at some point you’ve probably thought about starting your own business. And like most people, you’ve probably been held back by a host of concerns: whether your idea is good enough, how to get funding, whether you can live without vacation and medical benefits, whether you even have the chops. Now, there’s one more worry to add to the mix: whether it’s crazy to start a business in the wake of a recession.

Here’s the good news. First, all entrepreneurs face those same fears on the road to building a company. Second, many Fortune 500 corporations, including Procter & Gamble, IBM, General Motors and FedEx, were founded during a period of economic uncertainty. “If you launch your business during a difficult time, you know what you can do on a lean basis,” says James King, state director of New York’s Small Business Development Center. Then once the economy starts to bounce back, he says, you’ll be well-positioned to succeed.

We asked King and Rex Hammock, founder of SmallBusiness.com and CEO of the custom media and marketing firm Hammock Inc. -- based in Nashville, Tenn. -- what it really takes to stop working for the man and become your own boss.

Tip No. 1: Seek input.

For starters, you should run your business concept past a few impartial observers before pouring your whole self into it. “Family and friends are not going to give you an honest answer,” says King. And even if it is a great idea, you must remain open to the possibility that your better mousetrap simply might not catch on. If that turns out to be the case, adds King, be prepared to adjust and compensate.

Tip No. 2: Check yourself.
Feeling ready? Put yourself to the test. This online quiz, created by the Small Business Administration, will help you ascertain whether you truly have the drive, perseverance and skill set you’ll need to see your business succeed. Even if you don’t, the SBA offers tips on how to build those credentials. Take advantage of this advice before diving in.

Tip No. 3: Go it alone.
The simplest approach is a start-up with you as the sole employee. Says Hammock: “For consultants, contractors or freelancers, the opportunities are many. Companies are using contracted services to fill in gaps in their workforce.” Being an independent contractor often means you call your own shots and name your hours and fees. The downside is loss of vacation and medical benefits -- though there are ways around that. For medical coverage, seek out programs offered through industry member organizations or groups such as the Freelancers Union. You may have to forego vacations for a while, but once you have a solid client base, you should be able to afford a few weeks of unpaid leave.