You may also have a business idea, and wondering about this question of timing. With mass-media speaking every day about the financial crisis and how company are striving to survive, your family, colleagues or friends may try to prevent you from doing this.
Actually I think the best time to launch a business is just now !
Why ?
1. It's way easier to get public funding.
Just speaking about France (which obviously I know better), several actions have been taken
- the limit of public funding that may be given to a company have been set from 200Keur over 2 years to 500Keur between 2008 and 2010.
- 20Meur have been allocated to serious gaming, web, or mobile projects.
- OSEO provides unsecured loans to innovative companies
- some R&D expenses can be reimbursed, and measure have been taken so that reimbusement is quicker.
- the self-entrepreneur status has been created and allow individual entrepreneur to not paying tax while his company is not making any profits
To my mind France can been seen as a paradise for entrepreneur ! But a lot of this measures are temporaries and when the crisis will be over, you won't be able to benefit from them...
2. If you follow the start up model, having no clients in the first years is not necessary a problem...
Let me explain what is my definition of the "start up model". This means trying to get some funding to develop a product which could make your profit curve exponential.
You cannot do this with a grocery store or consulting, because the money you earn depends on how many consultant you hire, or the size/location of you store... All this clearly cannot lead you to an exponential curve. Selling software can, because it is a work once, sell many product. Once you product is built, you can sell millions at nearly zero additional cost.
Hence if you manage to get some funding (public or private), having no clients enables you to concentrate on developing your products instead of spending your (small) resources and reputation to sell unfinished products and doing a lot of support. ( ok on the other hand you may ends with a products nobody wants ! Be sur to do your homework before deciding to spend one year on developping a products without having clients)
3. If you sell cost saving products, the crisis may actually helps you
Lots of people have to cut down on expenses, and buying your product may be a way to do it
4. As everyone is thinking that launching a company in a crisis environment is bad idea...
This results in a less competitive environment and gives you more space to sell your products.
When times are better and everyone start to build there product, you are one or two year ahead, and in good condition to take a big market share.
So do not wait any longer and start thinking about your business plan !
