Is Now A Good Time to Start A Business?

Last week, I attended the Indiana Biomedical Entrepreneur Network where we discussed whether the current economy provided a good platform for starting new businesses. There are definite strengths in starting a business, for example:

• cost of doing business is lower in Indiana
• the economy presents new opportunities to reset your priorities and gain access to new resources
  
• the economy brings potential customers with new problems that need new solution

In reality, anyone can submit the necessary paperwork to “start” an Indiana business. In fact, there seems to be a direct relationship between business layoffs/cut backs and an influx of new start-ups. But, being out of work is not a good enough reason to start a business and starting a business is not the same as sustaining a business. As the stats for small business start-ups show, sustaining your business isn’t a walk in the park, regardless of the industry.

Small Business Openings & Closings in 2008, according to the U.S. Small Business Administration Office of Advocacy, September 2009:

• 627,200 new businesses, 595,600 business closures and 43,546 bankruptcies
• 7 out of 10 new employer firms survive at least two years, and about half survive five years

The bottom line is that anytime is a good time to start a business as long as you have a strong VALUE PROPOSITION – regardless of the economy.