Will there be any new Business Start-Ups?

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With all the fuss about the economy being unstable will anyone else have the courage to start their own business?

It's easy to see why folks would think twice about such a venture. However, without a doubt, there will be a multitude of start-ups in the next couple of years.

People that have been high up in the corporate world have contacts that will make the transition easier when running their own business. Down-sized execs aren't going to sit idly on the side and collect unemployment. They may even team up with those who had been sitting in nearby cubicles.

However, there are certain industries that are shrinking so bad that even a cut-rate pricing system might not be enough to bring in customers. Whether or not start-ups will have a shot in the next few years will depend on several factors.

Here are the top items to keep in mind before moving ahead:

* Are you trying to move into a market where the niche has been shrinking? If so, do you have a customer list from your previous experience in the market? Do you have a verifiable method of getting the same product or service to them at a much lower price? If not, then you better re-think this idea.

* Do not get caught up in the hype of some company trying to convince you to become one of their sales reps. Sales reps in this type of economy, unless they have been at it for years, have little chance of bringing in anything but a smattering of a cash flow. Veteran reps have a clientele list whose members are in the habit of buying the product. Getting folks to start from fresh is a hard job even in the best of times.

* If you have been working on a business launch, should you hold back or go forward? If you can answer the following questions with yes, then plan to move forward. Do you have enough financing lined up to keep your doors open according to your business plan for the first 12 months at least? Are you using connections to move your product or service that are familiar? Do not depend on any advertising campaign in this time to bring in every customer. Are you marketing a product or service that is not a luxury good? Consumers will find a way to do without extras (luxury goods) as best they can.

Let's hope that these hard times have not killed the entrepreneurial spirit. New businesses create jobs. At the very least, they offer opportunities for those who might otherwise be sitting on the sidelines collecting unemployment.

Financing is going to be even more critical than usual. Venture capitalists are holding back and no one knows when banks are going to open their doors for this type of financing again. If you are in a position to use your own credit lines and have friends with funds willing to help, go for it.

However, do not do anything that will put your personal credit or family in danger. Opening a business is always chancy, ever more so now. But, without new business, the economy is going to keep on a downward spiral until people start taking chances again. Think of a new start-up as your contribution to bringing the economy out of its slump. It needs all the contributions it can get.

Laura Bell is Freelance Writer and owner of www.bellbusinessreport.com. The Bell Business Report offers common sense business advice and how-to info for running your business. It takes the everyday headlines apart, dealing with business news, and shows you how to put that information to work for you.

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