Why it’s the Best Time to Start a Small Business in the Last 10 Years

With a federal budget deficit marking over $1 trillion dollars for the first time in history, the stock market reeling, real estate prices crashing, the credit market contracting and consumer spending falling through the floor, conventional wisdom would be that it’s not a time to start taking risks and opening a new small business. However, there are a number of factors which make it an excellent time, perhaps the best in recent history, to start a new small business.

First, retail space and real estate as a whole is very affordable right now. There’s much more of a supply of retail space in strip malls, malls, and other retail centers than there is demand. If you’re not a retail business, there is an equal oversupply of office space. This means that when you are out looking to buy or rent a piece of retail or office space for your small business, you can take your time, shop around, and force your potential landlords to fight against each other to get your business.

With unemployment nearing 7.8%, you will have a lot more applicants for jobs and can be much pickier about who you bring on board to your company. This will allow you as a business owner to have more competent employees and you will likely be able to employ them for less than you would if the economy was booming.

Material and supply costs are also facing a significant hit since there is less of a demand for them. If you are manufacturing a product, you’ll be able to create the same products for a lot less than you would otherwise. This means you can pass the savings on to your consumers and increase your sales or simply have a higher profit-margin for each item sold.

With many businesses folding during the down economy, you can also very likely pickup used office supplies and office furniture at a substantial steep discount on auction. It might not necessarily seem like a huge thing, but office furniture is extremely expensive (much more than the furniture you might buy at a furniture outlet center for your home), and if you can reduce costs as a small business owner in any significant manner, that’s huge.

With significantly decreased demand in many areas, that means you’ll be able to start your business for much less than you would otherwise. You’ll have lower real estate / retail space costs, more affordable employees, lower material and supply costs, and be able to scoop up cheap office furniture and equipment.

You can start out slow, getting only what you need, and then by the economy picks up and other people start thinking it’s an okay time to start a small business, you’ll already have a head start on any competition that might come up and get the benefit from the increased consumer spending that comes from an economic upswing.