Economic Downturn? Start Your Business Now!
An economic downturn is a great time to start that business you've been thinkg of. Jason Calacanis, who made his fortunes with Weblogs Inc., started his company after the Dot Com bubble burst. One of the reasons to start a business now is that a lot of the competition dries up. The VCs pull back and funding gets tighter. Even tech marketing genius Seth Godin agrees.
There are easily 10 clones for any given successfull Web 2.0 site. They're all getting funded. But they're years from being profitable, with no clearly innovative strategy. These are the companies to fall first.
So now it's up to the guys running operations on a shoe-string. Not only that, but as more and more business opportunities become completely virtual, business costs go down. All it takes is a couple of guys and their laptops. Even office space isn't required in these circumstances. Granted, these small time operations can happen anytime. But the point is that now those are one of the few options available. Many entrepreneurs don't have any other choice.
To keep a level head, none of these kinds of businesses are over night successes. Digg was around for a while before it exploded, same goes for a lot of other internet successes. Their owners just hammered away until one day things took off.