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
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.