Everyday Blog

As layoffs mount, the number of small business start-ups is on the rise too. According to research by Rob Fairlie, professor of economics and finance at the University of California at Santa Cruz (on behalf of the Kauffman Foundation), an average of 3.4 million new businesses were launched on average in the U.S. each year between 1996 and 2006. In 2007, that number jumped to 3.9 million. While 2008 figures haven’t been released, even more new entrepreneurs seem to be taking the plunge. “I have absolutely seen an uptick in the number of people who are attempting to start businesses of their own since the start of this recession,” says Janet Siegenthaler, a start-up consultant based in Fairfield, Conn. Before you liquidate your 401(k), check what these 10 recession-born entrepreneurs–many of whom have not yet posted a profit–had to say about starting businesses in the last 18 grueling months.

Sometimes it’s hard to predict where you’ll find your niche, so it’s a good idea to create a small business startup that encompasses a couple of different areas. For example, Dan Wiley, a 48-year-old first time entrepreneur, started a Los Angeles based firm that provides a range of services from public relations and advertising to branding and internet design. “I never expected we would be doing as much website designing as we have been, and that so few customers would be looking for our public relations services,” Wiley admits. His advice to aspiring innovators is to save up a year’s worth of operating capital to cushion the blow, should things not work out as anticipated.

A successful small business doesn’t happen overnight, warns Doron Reuveni, a 42-year-old who provides testing services for software, Internet and mobile application companies. Reuveni began the business in 2008 after securing $2.3 million in venture capital and angel investor funds, then another $5 million from independent investors. The biggest hurdle may be convincing investors that you’ve got a worthwhile product or service. “I’ve had this idea since early 2007,” says Reuveni, “but without investors, it was difficult to it get off the ground. It might take a little longer to get your business going, but be persistent.”

Sometimes even $500,000 in venture capital funding just isn’t enough for your small business to achieve what you had hoped. “Our target audience just [didn’t] have the funds to start experimenting with new software,” said Kimber Lockhart (22), who is marketing a software program that allows users to edit documents within an internet browser, without downloading anything. The only way to survive the early years of your market plans is to have a talented, dedicated team of professionals working with you. She adds, “In a start-up environment, the people are everything, so get out there and recruit the best.”

Beth Kaminski is the co-author of Curing Your Anxiety And Panic Attacks which detailed end panic attacks as well as tips on the various panic disorder medications available at anxietydisordercure.com.