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Your Step By Step Plan to Starting a Business in a Recession

2011 May 21

Many people think that starting a business in a recession is foolhardy, but if you get the right advice and go about things the right way you have a high chance of making a success of it. During a recession it’s often easier and cheaper to get started in business and as a mother; setting up a small business from home is the ideal way to find that perfect home and life balance.

The reality is that many existing businesses are folding: some are looking for a partnership while others may sell their business as a going concern at a lower cost. Providing you have a good business plan and a solid credit history then financial institutions will be ready to lend you the money to get started.

Business Plans

If you want to get set up in business then you need a good business plan. You will need to include a five year cash flow in your business plan as well as different milestones you expect to complete and when: don’t forget saving and recycling steps. Your plan should include all the equipment you will need to run your business, including business telephone systems and computing equipment. You will need to present this to banks and other financial institutions when you apply for a loan.

Know Your Target Market

If you want your business to succeed then you need to know who you are selling to and why. You should research your local area to ascertain the demand for your product or service. The findings from your research should go into your business plan as these are evidence as to whether the business is likely to succeed or fail.

Develop a Marketing Plan

You need a plan for marketing your product or services. If your business is going to necessitate a high level of involvement with customers then business telephone systems will be an essential component of day-to-day operations. (Even if you work from home, you may find that your existing telephone line is not to be used for business purposes, and it may be necessary to have a second business line fitted.)

You also need to establish what you can offer that is greater than the offers your competitors are making. Consumers become much choosier about how they spend their money during a recession. Identify how you can promote your business or product in ways that will appeal to your identified market.

Limited Companies

Protect yourself and your business by setting yourself up as Limited Liability Company. If you need any special licences or qualifications to run your business, now is the time to get those settled.

Establishing a Location for Your Business

If you aren’t buying an established business and don’t wish to work from home (it isn’t for everybody) then you need to find commercial premises in your identified area. See an estate agent who is used to dealing with commercial properties as they will be able to tell you the best place for your business to be located.

Getting Funding

If you haven’t already applied for funding or a small business loan then go for it now. When you go for the interview make sure you take your fully worked out business plan along with your marketing plan. If you already have limited liability and any other necessary paperwork take that along too. Lenders are far more likely to look kindly on someone who has already done the essential groundwork of starting a business.

This article was written by Amy Fowler on behalf of Maintel, who offer a variety of unified communications solutions and business telephone systems.

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