This article are provided for information purposes only, and are not intended as legal advice.

Is it a good time to start a new business?

January 15th, 2009

At the moment, there are a lot of stores which are closing but I think over the next few months, there will be a void in the market and many small stores will open to offer the products and services which were once offered by some of the large stores going under. 

A lot of people are getting laid off from companies and if they have worked in that company for a long time, they might get a reasonable size severance package.  If there are no jobs out there, some of those unemployeed people may look at the downturn as an opportunity to open a store. 

I think that this will take place when former employee believes that we are at or near the bottom of the recession.   Based on predictions in the paper, this could be in 6 to 9 months time.  I believe that people will start opening the stores when they believe the economy will not get any worse.  They may be able to get a bargain on the rent, since there will be a lot of vacancies.  Their costs will be lower than if they opened a new store today.  They may be able to rent the store without a long term commitment therefore the costs of starting a new store will be low, overhead will be low therefore they will have a better chance of success if they picked the right type of store to open.

Filed under: Starting a business — Gary Landa @ 5:54 pm

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