2012 is Good for Entrepreneurs & Small Businesses

Are you having a tough time during the bad economy? It isn’t surprising to find people getting frustrated when unemployment rates are high and it is hard to hold on to the job you have due to lay-offs. However, you may also be surprised to realize that a recession can be the best time to pursue your dreams and perhaps start a business of your own. 2012 is proving to be good for entrepreneurs because of the following reasons.

• Lower Living Costs

You get more bangs for your buck during a recession because other businesses are more desperate to earn the dollar in your pocket. The cost of food tends to go down because people are looking for deals at restaurants and the same goes for groceries shopping. All this means that your savings will last longer, giving you more time to explore options for starting up your own business.

• The “Big Fish” is Dying

You may be wondering why you should even consider opening up a business of your own when so many preexisting shops are shutting down. Well, the truth is that it is the larger companies that are hit worst by the bad economy because they have higher overhead costs. Many franchises and big fish names such as Sears and Taco Bell are expected to disappear in 2012, making more room for the smaller fish to take their place. There will be less monopoly in the market because the big companies will no longer dominate and you will have a better chance of filling the void in the market and making a name for yourself as a startup company.

• Lower Shop Rent

Usually it would cost an arm and a leg to open up a shop in a mainstream mall, but large businesses and franchises are cutting down on their store locations so there are many vacant spots available right now. Hence, the rental rates are much cheaper and commercial real estate owners are willing to show more flexibility and negotiate according to your terms. The store location that was way beyond your budget a couple years ago may well be within your reach this year.

•  Affordable Supplies

Brand owners are desperate to get their products on as many store shelves as possible and willing to offer very appealing incentives to shop owners. You can get the products that you want to sell at much cheaper prices and sell them with a higher profit margin. You can get great deals on whatever you need to fill up and operate your store, including everything from cash machines and computers to furniture and vending machines.

• Cheap Advertising

Advertising agencies are looking for new clients and are offering some very cheap advertising options. You could have your company website built for less than $100 as a one-time payment and hire sales companies to promote your business and sell more products for you on a purely commission basis. Advertising companies are realizing that the consumer trend is switching towards small businesses so they are customizing more packages that suit the entrepreneur’s needs and budget.