There's a pattern: more than 17,600 new businesses formed during the recession in the early 1990s.Î¾ More than 55,000 new businesses were recorded during the 2002-2003 recession, according to the Small Business Administration.Î¾ In spite of recessions, there are increases in business formation, as Paul Kellogg with Hughes Watters Askanase explains.
"For one thing, the recession caused a lot of people to lose their jobs or they reached a point where they weren't going to go any higher where they were, and they realized that.Î¾ That makes a good opportunity to sort of try something new that they maybe always wanted to do, or they just feel that they need a new direction or don't have any choice.Î¾ Many people these days with very few assets—hard assets—start a new business.Î¾ A lot of the assets you do need, if you do need to rent a place, or you need some small assets, prices are down.Î¾ And there's business to be had, even in a bad economy like that."
Kellogg says it takes a lot of research and planning to successfully launch a new business.
"Very few people know all of the aspects of it, and most people underestimate just how long and how much it's going to cost.Î¾ It costs twice as much and takes twice as long to do anything you want to do.Î¾ And if you can hook up with somebody who's willing to mentor you, that's great.Î¾ Business advisory groups that will help you out.Î¾ But there are lots and lots of resources out there, and like you say, you can do a lot of research online.Î¾ You need to sit back and do some planning and lay out all the steps that will get you where you want to be."Î¾
Kellogg says the downturn has produced a 20 per cent uptick in business formation work at Hughes Watters Askanase.