Despite economy, small businesses remain resilient
Rebecca Tonn | October 30,2009 | 12:00 am
Small businesses are the backbone of the U.S. economy, comprising half the nation’s nonfarm, private gross domestic product. And small business — along with the rest of the economy — has been struggling during 2008 and 2009.
But Americans are resilient and continue to become entrepreneurs.
Although changes in the economy may make it more difficult to launch a start-up, it doesn’t necessarily change the hows and whys of starting a business.
When would-be entrepreneurs seek the advice of Matthew Barrett, executive director of the Small Business Development Center, the first thing he does is help them determine if the business idea is feasible.
Sometimes an idea is not wrong, but how they plan to implement it can be — for instance, opening a gas station “out in the middle of the country,” instead of closer to a busy intersection.
“Some people get it in their heads that they have to run a business the way they’ve dreamt about it all these years,” Barrett said. “But they need to adapt the plan to the forces that will impact it.”
Social forces, such as social media and Internet usage, will impact a business and need to be addressed — as do economic or legal concerns and changing laws. For example, if blue laws change and “big-box” retailers start selling beer and wine in a region, that will affect liquor store owners.
And entrepreneurs dare not forget their competitors — “are they better than you? More established? How many are out there?” Barrett asked.
And one’s habits and lifestyle must also be considered.
A start-up business creates a new “personal lifestyle.”
People need to know whether they actually want to or are able to work, say, 80 hours per week, or whether they prefer more of a “part-time hobby.”
If none of these questions deters potential entrepreneurs, then the lack of liquidity in the credit market might.
View this article in it's entirety on CSBJ.com
