The recent financial difficulties will inevitably create new vulnerabilities and new opportunities for business. I don’t think it’s so much about whether setting up a new business in the financial downturn is a good time, it’s whether the market/customers are ready for your products and services.

If the business you are starting is targeting customers who are looking for something new, are in the mood to change their supplier. Or, their circumstances have just changed such as the retired, people moving to a new area, someone in a new job….then you may be onto something. But only if you can demonstrate a difference. If you’re not different then you need to be cheaper!

People who are looking to change, read Fast Company magazine, have just bought a book about new ideas, are exploring new opportunities on a regular basis, are at the latest art gallery opening. These people are far more open to buying from you than people in traffic queues on their way to work! Find them, find the product and service to match them, then you may have a new business with potential. The economic downturn isn’t part of the equation really.