Upstart start-ups: Striking out on your own in a recession

“The last day of a recession is the best day to start a business, the saying goes,” said Carla Fried in Money. That day may seem far off now—but that’s no reason to delay starting to “tackle” the essential steps necessary before plunging into entrepreneurship. First, make sure you’re cut out to run your own shop. Research your concept, write a business plan, think about sources of funding. Don’t plan on quitting your day job—assuming you still have one—until you’ve laid the groundwork for a launch. “One important caveat: If your company can make any claim to work, products, or intellectual property created while you were employed, you may want to quit before the planning begins.”

There’s “no shortage of advice and resources” geared toward aspiring entrepreneurs, said Kelly K. Spors in The Wall Street Journal. “In fact, the biggest problem is figuring out whom to trust and what resources will be most useful.” Start with one of the 900 government-sponsored Small Business Development Centers, which offer free counseling and courses. “Need a business mentor with very specific experience or expertise?” The nonprofit group Score—formerly known as the Service Corps of Retired Executives—can connect you with an appropriate expert. Go to Score.org. Finally, universities are a great resource. Many are “eager to give students real-world experience” in law, marketing, and accounting by offering free or low-cost services to entrepreneurs.

Advice may be abundant, but funding is hard to come by these days, said Scott Kirsner in The Boston Globe. Banks are “clinging more tightly than ever to their bankrolls,” so make sure you have a solid prototype or pilot project before you go looking for a loan. Once you’ve polished your pitch, consider giving your local banker a call. While the big banks are hunkering down, many regional banks continue to do business as usual. Individual investors who believe in your project also can provide much needed start-up funds. Just be sure to begin networking early in your start-up process, so you can “build relationships with investors before you try to hit them up for cash.”

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