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The Wrap: Start A Business Now? You're Crazy. Like A Fox.

by Richard Warner

June 1, 2008

S o we’re in a recession. Depending on your line of work, this may or may not be your life’s lead story right now.

My friends in real estate, who were flying high on fat commissions a couple of years ago, are singing the blues. Management at our office building is even friendlier to tenants. Car dealerships are hoping we’ll spend our IRS windfall that the Feds had no business doling out in the first place.

And here’s another trend: The stress of the recession has many folks daydreaming about leaving the “velvet birdcage” with its guaranteed twice-a-month paycheck, and opening their own company.

But we’re in a recession, after all. What makes you think you’d be any more successful on your own than working for a company? And what do you do first? Hire a lawyer to incorporate? Find a snappy company name? Look for funding?

There is no single correct way to do this. Many people became more successful than me using different strategies. But this was my experience launching a company after I was fired during the recession of 1990.

Actually, the recession didn’t hinder our growth. My wife and I operated out of our house for a while, so companies looking to lower their costs hired us instead of larger, more expensive competitors.

The only investments we made were a phone system so we didn’t have to run up and down the stairs, a computer, fax machine, printer and dedicated phone line. (At the very beginning, we would answer our business/home phone with “Good Morning!” and customers would ask, “Is this a business?”)

I can’t remember a more thrilling time, particularly the first day we hit $1,000 in revenue. I wouldn’t trade the experience, even though the stress was usually worse than working for a big company.

So, should you quit your job and head out on your own in a recession?

First of all, your product matters more than the business cycle. Is it a great product? Are you proactive? If you are to be successful as an entrepreneur, forward movement will happen because you make it happen.

Are you organized? Whatever it is, your product has to be high quality and you must consistently deliver it on time.

Just my opinion, but waiting until you have the perfect name, Web address, ideal corporate structure and a strong economy are excuses. Just do it.

Get your first customer before you quit your job (heck, maybe your employer will become your first customer); keep your overhead low; and read “Good to Great,” The E-Myth” and Jack Welch’s “ Winning.”

And try not to let your new business consume your life. As you get going, it will become seductive and will take all the time you give it. You’ll do a better job and have a healthier life if you leave it behind at dinnertime.

Gives you plenty of time to think about those poor folks who are still mired in the recession.

Richard Warner hosts “Georgia’s Business” on GPTV and is CEO of What’s Up Interactive.

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