Start-up: February 2009 Archives

Sramana Mitra tells aspiring entrepreneurs that they need to be ready to bootstrap if they intend to launch a business during the recession.  But, bootstrapping does not mean that you can't build a successful and worthwhile venture:

Businesses often fail to take flight because they cannot raise funding. Well, start with the assumption that funding will not be available until the business is substantially further along, if ever, and that bottleneck is removed.

Additionally, most businesses should not look to raise money. They are truly small businesses - in this day and age even a $5 or $25 million business can be considered a small business, and does not really fit the framework of professional venture capital.

That does not, however, mean that these businesses are not worth building. In fact, a $12 million a year company fully owned by the entrepreneur is a wonderful situation. Full control. Loads of cash. And true independence. Heck, even a $300,000 a year business has many of those same attributes, and is plenty worthwhile.

 

Diana Ransom at Smart Money offers four tips on launching a new product in the current recession:

Launching a new product when consumer confidence is at an all-time low is daunting enough for large companies. But for small businesses, if the product doesn't take off, it could be devastating.

"Even if what you're offering is packed with value, consumers just aren't willing to spend money on anything nonessential these days," says Jeffrey Cornwall, the director of the Center for Entrepreneurship at Belmont University in Nashville, Tenn.

Even if you think the timing may be just right for introducing a new product or service, offering a perk or two to customers can't hurt, says Cornwall.

Her tips include being flexible on the terms and contracts associated with your new business, offering strong guarantees, find a way to sell smaller and less expensive offerings, or better yet, find a way that you can offer lower prices while still making a buck. 

Are you one of the many new accidental entrepreneurs who find themselves out of work?  Are you trying to figure out how to move your idea for a business forward toward implementation?  I have been working with the folks at ideablob.com in their efforts to put together a short "how-to" for those wanting to translate their ideas into operational businesses.  There guide is called Idea Compass and it is available free at their website.

The Wall Street Journal offers some tips for those from Generation Y who will be needing to create their own jobs during this recession.

Finding a job in this economy -- even keeping one -- is tough. Tired of the uncertainty, some twentysomethings are going from job hunting to job creating by starting their own businesses.

Generation Y entrepreneurs have a few advantages here: They're seen as tech-savvy, enthusiastic risk takers with fresh perspectives. But they also tend to lack money, credit histories and managerial experience.