Start a business today!

In these uncertain times starting a business is a very good way to hedge against the uncertainty of your current income streams. Fewer people will be starting businesses now because they are worried about the economy? Makes sense doesn't it. Well I think it is just the opposite, it is a good time to get started because people will be looking for bargains, and you, with your low overhead can offer lower prices then the entrenched folks with overhead to pay. Also, suppliers of products, and services are all looking for anyone who can bring them increased sales, and that gives you negotiating power. Hence, everything you need for your new business will be cheaper. So, for every negative thought, or comment you get, think the opposite, and make it happen. All the normal rules that apply during good times are off, anything goes, so think the opposite and re-negotiate everything. The only exception now is credit, that does get harder to get, and more expensive during economic down turns.

Cash is king, when the economy is tight it is cash that gets you the deals. Making extra cash from a small business will hedge against an uncertain job market, allow you to reduce debt, or make that investment you've been itching to do. It is time to look for opportunity.

What business do you start?

I can not be specific as to what business you should start, because I do not know your talents, nor your circumstances. Instead let us look at some suggestions and some economic conditions or realities, and some thought processes to get you to thinking.

Overhead: With uncertainty in the market place and the need for new businesses to sell at lower prices then the competition, having low overhead is fundamental. Internet based businesses come to mind. They are easy to start, low overhead, and Internet based businesses sell to the world not just local markets. If your choice of a business is land based then negotiate low rent for the first year or two, or maybe free rent until you get started. Maybe try percentage rent, or anything else that gets you started with the lowest possible operating cost. Be creative.

Suppliers: All suppliers of goods and services are looking for more sales as their old business model slows. It is easier to find good suppliers now that sales are slow. We are getting suppliers calling us everyday looking for business, it is a great time to start a retail business as the vendors are hungry for new retailers.

Pricing: Low prices, and saving money is all that is on folks mind. Internet shopping is more popular then ever, as people everywhere seek to stretch their budgets. Do-it-yourself, is more and more a consideration, gardening, and home fix up rather then moving is increasing and so on. People are still going to do things, they are just looking to do more for less. Can you fill that need?

Free: Free is huge. Free shipping, free financing, buy one get one free, and so on. If your offer is something for nothing, it gets response. Our web sites have free delivery, free gardening book, free installation help via our #800 number and so on. It is time to sell saving or cost reduction.

Bargains: Keep in mind that all businesses and households still need to buy everything, just like in good times. They just want to pay less for what ever they want or need, or they will wait until necessity drives them to spend. But spend they will. There are lots of sellers of distressed merchandise where you can buy stuff to sell at bargain prices. Try to think of things that you can get cheap, and sell to bargain hunters, which these days is everybody.

Selling price has always been the easiest sale to make. I still buy at auctions, and resale what I buy. I do not care what I buy, as I am buying cheap, and re-selling the items based on price. I will buy consumer goods, or industrial goods, it matters not. All across America there are truck loads of goods, dock warehouses full of merchandise, government auction sales, boat docks full of re-possessed boats, car auctions full of cars that are not getting many bidders, IRS auctions, and on and on. Merchandise looking for innovative merchants who can turn it into cash. Search the web the deals are out there.

Innovative imagination; It is time to be innovative in your thinking. Your goal should be to start a small business and make money. Low overhead requires innovative thinking, you need to maximize your use of money, and your use of time. Hand made signs on the side of a street advertising a sale a year ago where cheesy, today they are innovative. Apartment buildings are offering free rental truck use with move in. Flea markets are attracting more new products, as sellers look for low cost venues. Think.

Suggestions; Low cost businesses you could start, just a few to get you thinking.

• Consignment shops, from clothing to RV's: no inventory cost.

• Buy at auctions for resale: low initial investment, can start with almost any amount.

• Repossessed real estate maintenance: Only transportation and basic tools needed.

• Low cost moving company: One used truck and minimal tools is all you need.

• Hot shot and local delivery service. A truck and trailer and you are in business.

• Home improvement sales. A photo book and some brochures gets you started, everything else is after you get the customers deposit.

• Backyard storage building or Garages, built in your yard: You get the deposit from the customer and buy the materials, knowledge of basic carpentry, photos of sheds, and tools is all you need.

• Yard work: Many older people today no longer do yard work, and all businesses are looking for lower cost yard men.

• Outside storage: if you have the space, unused real property can be put to productive use. Businesses, banks, and home owners all need bulk storage space.

• Recycle: Commodity prices are falling but there is still money in them there metals.

• Book Keeping: Book keeping services has always been a basic, easy to do business.

• Broker: A broker is a person who finds a buyer for a product and earns a commission.

  Put buyers and sellers together on most any item and there is a commission to be made.

• Sign sales: You get sample signs from sign shops and then go around from business to business selling signs, then have the local sign shop make them, and you deliver them.

I could go on, but there are many good books out there on low cost businesses you can start.

The point is to get started and make some extra money.

Let us look at one example of starting a business. Let us say you want to start a local delivery service. You contact all the local stores offering your service. You sell it on the bases of dependable service, seven days a week. You are selling lower cost, the store reduces delivery cost by not having the staff on the payroll, or the on going truck ownership expense. The store has no cost for delivery unless they make a sale. You could deliver all manner of products, from consumer goods to industrial products. This is really a marketing and logistics business. You advertise for men with trucks to do the work, and spend your time looking for work or coordinating the work you get. From a one man show, to a three or four person team, aggressive go getters can make a go of this one. It is more about effort and planning, then about money needed to get started. In good times you are selling dependability and speed of service, in bad times, you are selling cost reduction and reduced overhead for your customers, with expanded service hours so your customer can better service their customers.

J glasgow esq.