If we look at history, more millionaires were made during The Great Depression than any other time in US history and during our last recession in the early 90s many companies still thriving today were born, like Clif Bar.

There are numerous reasons why starting a business now is advantageous, but these are the top five.

1. Increased Opportunities
Anytime the economy changes or a new technology is introduced it creates opportunities in different fields.  While some industries are shrinking, others are exploding.  For example, while Chrysler is claiming bankruptcy because their gas-guzzling vehicles have become irrelevant, a San Diego-based company, Jitterbug, who produces simplistic cell phones with extra large numbers on them designed for the elderly is hiring and growing at breakneck speed.

2. Less Competition
In the first two months of 2009 the Department of Labor reported that over 800,000 small businesses closed.  I can guarantee that these were businesses that may have been barely making it when the economy was flush and when the recession began they realized they did not have the proper infrastructure, their overhead was too high or their business model was flawed.  These closures create a lot of space for smart new business owners to open and serve their customers.

In addition, many companies have cut their advertising budgets to lower costs which can give the public the perception of fewer businesses offering the same products and services as yours.  The perception of less competition allows you to stand out and strongly establish your brand.

3. Decreased Trust
Let’s face it, the big companies melting down faster than Chernobyl this past year have withered the public’s trust.  It’s become obvious that large corporations are not looking out for their employees and many didn’t even look ahead enough to protect themselves.  Whenever the big businesses that people have equated with security go belly up, it creates a fear-based marketplace.  First, people contract and don’t buy at all.  Then they start wanting to buy, but look to do business with people they know and trust.

People who purchased their lotions and body wash at the mall are now more open to purchasing from their Mary Kay consultant.  It feels good to them to know that the money they spend with someone they know helps out that family.

4. Discounted Resources
With many companies cutting back, businesses want to maintain cash flow so they are often willing to discount their services or products or offer longer payment terms than in the past.  These options help a new business owner’s startup funds go farther.

One area these discounted resources should definitely be capitalized on is in the advertising market.  Several larger companies that ate up available ad space have lowered their ad budgets, not only creating space for smaller companies to come in, but creating open ad space that publications, radio and TV stations need to sell.  Many of these outlets will negotiate if asked.  One of my clients got two ads for the price of one.  These bargains allow business owners to make more of an impact for less money and to stand out while others are fading back.

5. Control of Your Future
Having a job is like putting all your eggs in one basket and then handing it over to a clumsy kid to carry.  You have no control over whether you will get laid off, have your pay cut, have benefits taken away, have your hours lowered, etc.  You have one line of revenue and if the powers you report to decide to cut that off, there’s nothing you can do.  No matter how many hours or how hard you work, in most cases your salary stays the same.

None of the above has to be true if you own your own business.  You can build a business model that allows for multiple streams of income so if one dries up, you still have the others.  You control the amount of income you make because you are in charge of pricing and how much and how hard you work.  You create your eggs and then you carry the basket yourself.

(c) 2009, Leah Grant Enterprises LLC.  Publication rights granted so long as article and byline are reprinted intact with all links made live.

Will you be one of the millionaires who create their success during this recession?  You could be!  The timing is right.  Get the info you need to launch a profitable venture in the New Business Mentor Leah Grant’s free success kit including a timely special report and audio Secrets of Successful Business Owners at http://www.leahgrant.com

I’m going to share with you the five reality check questions I ask my fledgling entrepreneur clients.

Moolah

The first question is about money.  Yes, it is kind of true that you need to have money to make money, but you don’t need millions.  Do you have six months or more of living expenses in a liquid account?  Or do you not need your wages to contribute to the household income?

If you answered, “Yes”, congratulations.  If you answered no, how long would it take for you to accumulate that reserve?

One thing to consider is your current lifestyle.  Are there expenses you could eliminate or scale back on which would allow you to save additional money, plus, if you’ve eliminated the expense, it means you’ll need less to live on in the future.

Tick Tock

The second question is about time.  Do you have a minimum of 30 uninterrupted hours per week to devote to your business?  By uninterrupted, I mean time that you aren’t watching a child, doing laundry, running errands or telecommuting to a job.

A lot of people quickly answer yes to this question without really thinking about it, so I recommend that you take a calendar and map out an average week.  Be sure to put in everyday things you might take for granted, such as picking up the kids from school, doing household chores and exercising.

These items take up physical space instead of mental space because they’re repetitious and so they give you the perception that you have more time than you actually do.  Now, how many hours of uninterrupted time do you have?

When does that time fall?  If it’s between 9 pm and 1 am, you could start an Internet business, but if you’re offering a service to people or companies, they will want to do business during standard business hours.

If you find that you have less 30 hours per week, it might not be the right time for you to start a business.  A new venture takes a lot of upfront time and energy and it will take longer to build a solid client base if you don’t have the time to devote to it.

On the flipside of that, if you’re transitioning out of a full time job or know that you will soon have more than 30 hours, set yourself up for success by expecting your business to get started and grow at much slower than the average pace.

La La Land

The third question often surprises people.  Does your personal life run relatively smoothly?  You are the center of your business.  If you are also the center of emotional mayhem in your personal life, it’s going to show in your ability to start and run your business.  If you’re in the middle of a nasty divorce, adopting your first child, moving to another country or have some other intensely emotional taxing event happening in your life, adding the stress of starting a new business could send you straight to the funny farm, and if not there, to business failure.

Get your personal affairs in order then open your business.  I coach many of my clients for six months to a year on getting their personal and financial life cleaned up before they get down to opening their business.

One-Ring Circus

The fourth question is:  Do you work well by yourself?  Not everyone is cut out for working from home alone.  If you currently work in an office, ask your boss if you can work from home for a week.  See if you like working without outside stimulation or the environment of an office.  A day isn’t enough.  You need to be home for a solid week to see how it feels to be isolated and solely responsible for each minute of your day.

If you find this isn’t for you, you can still open a business with a partner or even several or you can rent office space in an executive suite.

A lot of people love working by themselves from home but they determine that they aren’t as productive when others aren’t around or someone else is setting the deadline.  Your level of self-management will impact this element.

Juggling

The final question is do you manage multiple projects and tasks simultaneously without getting overwhelmed?  If you answered yes, that’s great, because that’s exactly what you’re going to need to do daily.  You are the provider of the service, the customer service department, the accounting department, the hr department, the marketing department, the administrative department, the technologist-EVERYTHING (unless you have a good amount of startup capital and can hire help right away).

If you answered no to this question, you might be a tradesman or woman who desires autonomy in your work, but who really isn’t an entrepreneur.  The distinction is that a tradesman or woman wants to do their specialty, such as massage, process improvement, executive coaching, but they don’t want to punch a clock or be responsible for all the ancillary duties of owing a business.

If you fall into this category, I recommend one of two things.  Buy Michael Gerber’s book “The E-Myth Revisited” and see if you want to stretch into the areas necessary to run a successful business or find a company or business that has put the structure in place and pays you as an independent contractor.  This arrangement allows you to control when and how much you work without managing the day-to-day.

If you answered yes to all of the questions, then you are ready to go!

(c) 2009 Leah Grant Enterprises LLC.

WANT TO USE THIS ARTICLE IN YOUR EZINE OR ON YOUR WEB SITE?  You may, as long as you include this entire blurb with it: New Business Mentor Leah Grant publishes Startup Success, a weekly enewsletter.  If you’re thinking about starting a new business or are in the early phases of entrepreneurship, get your FR.EE New Business Startup Kit including the Secrets of Successful Business Owners audio at http://www.leahgrant.com