The stimulus has had a positive effect on the economy, and the potential for future growth. While jobs are still scarce, this provides the best opportunity for entrepreneurs who are wondering if now is a good time to do a startup. Some of the best companies actually started during recessionary times, as these times afford opportunities for business owners that aren’t available during periods of growth. It can force new entrepreneurs to be creative with small business funding, while increasing the need for innovation. Take stock of your business idea, dust off your business plan, and think about getting started now, until waiting when things are actually on the road to recovery. You will be glad you started early and picked up some of the perks that are available for new business owners during tough economic times.

Financing Is Easing Up

A few short months ago, it would have been clearly impossible to raise funds for your new business. The markets are slowly thawing and investors are looking for great ideas and good companies that will be the next big thing. Some areas around the country are also showing signs of recovery in their housing markets. If you have a home, you can refinance and pull some funds out to start a business, assuming you have equity in the house. You may also be able to sell it now, and use the funds to help start your business.

Still A Large, Cheap, Labor Pool

While no one wants to be unemployed, the fact is that millions are unemployed and running out of benefits soon. As a startup, you have your pick of quality talent that may be having a bit of bad luck with the job market. Even if you don’t want to hire people full-time, there are plenty of people who would love a part-time or temporary contract position to help them make their mortgage payments or put food on the table. If you wait until the job market picks up and recovery is well under way, you’ll be competing with far larger companies who will snap up the best talent quickly. Right now, is the best time to check out who is looking for a job and trying them out. If you hire them as contract workers, you can take them on permanently once the recovery is well under way. This gives you leeway to scout out the best workers and train them before things start to really roll.

Best Training For Lean And Mean Operations

A recession is the best time to learn how to run an operation on a shoestring. This will help you develop a company that is lean and mean, efficient from the ground up. If you were to start later, when the awareness of the tight economy has faded, you and your employees would be more lax about everything and it your business processes would end up costing you a lot more over the life of the business.

You Can Get Equipment And Space Cheaper

When you start up, you need to rent premises, get equipment together, and all that costs money. However, in a recession the cost to buy space is often far less, due to people defaulting on their mortgages of commercial property or businesses shutting down. If you want a prime business location, lock in the lease now, while these offers are still on the market. After the recovery takes hold, more people will be jumping in trying to ride the wave up, and the rents will go up too. If you have the money to buy, the deals for commercial property are rock bottom.

Similarly, you will have to buy equipment to get your place of business up and running. You can get fantastic deals on office equipment and instead of waiting to depreciate it over the years, there are now some government incentives that allow you to depreciate 50% of it this year. If you want to buy vehicles for your company, this incentive can apply, and can be a smart tax move. As always, before buying something that you think will help you on your tax bill, check with your accountant to find out the pros and cons of such a move. With the American Recovery and Reinvestment Act of 2009 there are numerous rebates and deductions that have changed, and can help a new business get off the ground running with far less monetary investment. Take the time to find out what those are, and pull those expenses into the year where they apply and can help your business get off to a good start.