Downturns in the economy are actually a great time to start a business that runs more efficiently than competitors. This is because companies are examining every expense for ways to save. If you can offer a better price than their current vendor, you will have a decent chance of winning their business — and growing your new company rapidly.

Scott Aughtmon, an upcoming guest for the Business Owner’s Toolkit radio show recently published a new e-book entitled “How Your Business Can Thrive and Prosper in A Recession.” To create the book, he spoke to 18 top experts in marketing, sales and business. The result ended up being two volumes! One of the contributors, Jay Levinson, the author of the Guerilla Marketing series of books, provides some great inspiration for entrepreneurs who want to get started in a weak economy.

“I think that many companies retreat during a recession, opening niches and leaving many prospects ignored,” Levinson said. “If you have a product or service that helps people conserve their funds, you’re positioned as a winner.” Levinson lives what he preaches. He attributes the success of his Guerilla Marketing series to timing - his books were published during a rough economic period which contributed to their popularity and success.

I’ve also had the opportunity to talk with successful entrepreneurs such as Sam Carpenter, author of Work the System. He points out that the most successful and wealthy entrepreneurs work hard to make their companies self-sufficient. He encourages entrepreneurs to create processes and systems upfront for their business that reduces or eliminates ongoing tasks and labor. Automating as many tasks as possible, he says, is one of the best ways to keep your costs low, your work hours reasonable, and your company competitive in the market.

When you start a new company in a rough economy, the key is to avoid the most common mistakes. This way, you’ll have natural advantages over the competition. For example, many business owner’s who started their company in a strong economy did so without the proper legal structure. In choosing to run their business as a sole proprietorship they weren’t adequately prepared for an economic downturn. Entrepreneurs that start their company in a rough economy are more likely to form a limited liablity company (LLC) or corporation and gain the immediate benefits of limited liability protection.

Starting a business during a weak economy provides ideal motivation for getting everything right the first time!

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