Is it crazy starting a new business in a recession?

[suzi1234b]

Hi

I have read various posts about how the beauty salons are holding their own through this tough recession.

But how about new start ups? With the government cutting business link services and grants or new businesses, with the hikes in vat and the huge job cuts in the nhs and police to start with, is the recession going to hit businesses further? and is it crazy to start a small business in the current economic climate?

Thanks
Susan

 

[vitality]

Hi Susan, I personally don't think it is crazy as studies have shown that people are cutting down on bigger luxuries such as holiday's and new cars and see beauty treatments as an affordable luxury. I suppose it depends on the area,what treatments you offer, your target market etc. but at the moment I am busier than ever and still attracting new client's.

The only thing is that people tend to be fussier these days and customer care is more important than ever along with maintaining high standards which should be done anyway. People are still willing to spend money on their treatments but want more for their money such as loyalty cards, free gifts, discount coupons etc.

 

[Ruth Mills]

I think it's probably better to start a small business now, to give yourself time to get established, than it would be in a few months time when all those job cuts start taking effect - as at least you'll have given yourself a chance to get up and running by then - whereas quite a few people who have lost their jobs will probably be wanting to start their own businesses by then too - so you will have an advantage over them by already being established, and already having a customer base.

 

[jes]

No, I don't think it's crazy. It's actually a very good time to open a salon because there's so many premises up for sale at the moment This means you can really pick and choose until you find something that's just right for you.

What would be crazy, would be opening a salon and expecting an immediate profit. You must make sure to have to have enough capital to see you through some really lean years, until a time when (hopefully) the economy and customer confidence starts to pick up

 

[suzi1234b]

Thanks for your advice, I think i need to revisit my business plan x