Starting a business during a recession - KTRE.com | Lufkin and Nacogdoches, Texas

Starting a business during a recession

By Donna McCollum

NACOGDOCHES, TX (KTRE) - One of the first purchases for new business owners is a 'Now Open' sign. During a recession you'll have to hunt for them, but they're out there. There's one at a new mail center on South Street. The California based partnership is opening stores in Baytown and Nacogdoches. Unfortunately, the recession is throwing off performance projections. "It didn't come close to what we actually expected," said manager Blanca Giner. So the wait for business begins. Owners are banking on providing a needed service with the benefits of low overhead and setting up shop in a well established storage business. " You got to take a risk sometime and hopefully this one will grow."

Growth is also the goal for 390 businesses that registered assumed names with Nacogdoches County last year. This a drop in new start ups from 2007. Even so, Michelle Smith is baking up an innovative catering system. Like her recipes, she's testing the market because she knows the odds. "Nine out of 10 businesses fail in the food industry," said Smith after pulling out fresh baked blueberry  muffins.  That realistic approach keeps Smith at home to maintain a low overhead. In addition, she's thinking outside the box. Her focus group is working professionals tired of fast food take home. Another plus is, "This is not a business that pays the bills. This is a business that we hope will pay for itself, but makes a modest profit margin so we can expand the business," said Smith. 

An owner of a newly opened window tinting shop doesn't have that luxury, but he has a dream. He has always been his own boss and wants to keep it that way. That seems to be the appealing factor about opening up anew business, anytime.

Determination, ingenuity and capital may be what it takes to beat a recession. 

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