Starting a business in a downturn is never easy. Just ask Wally Amos, who founded the “Famous Amos” cookie brand during the recession in the mid ‘70s. Though difficult, he managed to pull it off with a superior product, and one that was, quite frankly, an affordable luxury.
Nonetheless, you can’t ignore the present circumstances. The credit markets are tight, especially for small business. Venture capitalists are fleeing to more established businesses with proven business models and positive cash flow. And the once standby startup method—of using credit cards—to fund an initial venture has gone by the wayside, given the tight credit card restrictions now in place.
So what’s an entrepreneur to do?
Get Creative!
First, this is the moment to get creative. You need to have the guts to approach family and friends, and, if they can’t help, then at least get them to give you referrals to others who may. For example, most people have a lawyer and an accountant; they are excellent sources for finding angel investors, as they deal on a daily basis with people with money, and you should use them as a network to build a base of other attorneys and accountants as well.
Also, you need to attend your local Chamber of Commerce meetings and network accordingly.
Bootstrap!
Second, you need to bootstrap. Forget about getting stuck in the minutiae of setting up the perfect office with the perfect chair, etc.
Author: Stephen L. Bainton
Copyright 2009 StartupNation, LLC
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