Starting a Small Business in a Down Economy

Posted On:

Are you a recent college graduate not sure where to go next or a recent victim of a company layoff? Many are finding a challenging job market and because of that, waving off the traditional income model in favor of starting their own small business.

Consider the case of Scott Gerber, a graduate of NYU’s film school who finished school five years ago and could not find work. He racked up thousands of dollars in student loan debts only to find himself living with his parents again after the college experience. He found himself taking out more loans after school in order to start a new media and tech company only to end failing in 2006.

Scott found himself demoralized and wondering if this was what a college degree was going to get him. The situation changed as he decided to start another company with the $700 he had left to his name.

His new company, called Sizzle It, specializes in short promotional videos. It was profitable last year according to Mr. Gerber and while he isn’t a millionaire, he has paid off his student loans and move out of his parent’s home. His experience is becoming more and more common as recent graduates realize that the job market may have changed for good a couple of years ago.

Stories like these are popping up all around the country as the latest financial crisis has made many of the largest companies reluctant to hire. It used to be simple: You went to school, got good grades, and then went onto a steady job where you strived to make it to a management position.

Today’s students seem willing to skip the security of a corporate job, for the challenges of running their own businesses. It could be out of sheer adventure or out of necessity, but the story is being replayed over and over. No longer is a college degree a ticket to a job. If you’re planning to start your own business once you graduate, first make a business plan.

Next, once you have a plan you may want to attract funding but before you do this, register your company so that you’re not an individual seeking funding but instead, you are a real company. Business registration is easily accomplished by using an online business registration service.

Even if you’re not a student, the traditional job market may have squeezed you out but along with a weak job market, the down economy is paving the way for many entrepreneurs, young and old, to follow their dream by starting their own company and those companies are thriving.