Nighthawk From UK - Scotland, joined Sep 2001, 5321 posts, RR: 30
Reply 2, posted (7 years 2 months 1 week 1 day 2 hours ago) and read 1631 times:
Quoting DesertJets (Reply 1): You have a combination of a tight credit market so getting capital would be a pain along with reduced consumer spending and confidence. That isn't exactly a recipe for success.
Bear in mind however that rent and labour are also at low levels, so now is a pretty good time to start a business as your cost bases are much lower than your rivals. You just need to time it right so you get the cheap rates but launch just as the market starts to pick up again.
Michael O'Leary has the right idea, now is the ideal time to start up an airline, as there is a surplus of aircraft on the market forcing down prices, and a lot of routes up for grabs from carriers that went bust. Sign the lease on the aircraft now and hire the pilots who are out of work, and by the time you launch in the summer things may well be on the up and people looking to travel again.
Comorin From United States of America, joined May 2005, 4909 posts, RR: 14
Reply 3, posted (7 years 2 months 1 week 1 day 2 hours ago) and read 1624 times:
It's always a good time to start a business. Here are some pros and cons timing-wise:
1. Cons - tight to no credit for small businesses, except for SB guaranteed loans.
2. Pros - great deals on rent, supplies, labor availability and costs.
3. Cons - Lower demand due to recession, tightened customer spending budgets.
4. Pros - Customers looking for cheaper alternatives, cost-saving ideas.
5. Cons - Cost cutting by your competitors affects margins.
6. Pros - You will be a lot more nimble that you competitors with high $ commitments.
So you need to think of your proposed business in these terms and see if it makes sense for you. My only regret in life is not having started my company sooner.