Making lemonade from lemons.. Unemployment and the Economy

[Peacetrain]

I read somewhere that 60 to 70 % of new jobs were created by small businesses. With all that is going on now with unemployment dragging us down, I hope these credit markets open up (they are ripe with money) and these banks start lending to new entrepreneurs to start businesses among those who have lost jobs.

Our cup may actually be half full and rising if people are willing to take a chance. Our reliance on big box stores that were the hall mark of the Bush years, were a disaster on the small buisness person.

The President has been pushing for loans for small businesses, and I hope those who are among our friends in the DU and those out in the world, have the opportunity to move to a small buisness forum

I have been seriously, and I mean seriously thinking about starting a small buisness for fabrics and knitting needs.

These shops that closed down in the last 7 years are renting pretty cheap.. It is something I have always wanted to do.. that and get my books published.

This maybe the time to take that chance.

What is that old saying, it is always the darkest before the dawn..

[BR_Parkway]

1. Good luck with it, you should always follow your dreams - we're hoping

as a small business to survive for a while then start thriving again.

As people cut back, the need for sewing needs should increase as more people try to make things for themselves and keep them in good repair - sounds like the time may be right.

[Warpy]

2. That's just not likely to happen for the next couple of years

which is about the time it's going to take the banks to discover just how bad the situation really is.

Right now, they have no way of knowing how much paper on their books is bad and how much really isn't because nobody knows exactly what it is but the crooks who wrote it and they're in the Caribbean and not talking.

Until they know they're going to survive, they're only going to lend to sure things like existing and thriving businesses and people with enough money to cover the loan but who don't want to sell stocks at a big loss.

Nationalization, which won't take place until and unless the first big bank fails completely, is the only way to loosen the purse strings for entrepreneurship unless the government cleans up the SBA.

[Greyhound]

3. I've been writing about just this for over a year. Small business drives the real American economy,

and always has. It employs far more people than big business, and always has. It pays more taxes than big business, and always has. Unfortunately, The Republics and Repubic-lites took the SBA and turned it into a corporate welfare program for... wait for it....





the banks and financial industry.

I think that one of the very best things Obama can do to turn the real economy around, and for a fraction of what we're dumping into the Zombie Banks, is to re-invent the SBA and use it to make direct grants and/or loans to small businesses and especially start-ups, something it has not done previously. Over the next year we are going to see an acceleration of large and huge companies going under, accompanied by more and more layoffs, I don't think that at this point anyone can argue against that without enormous credulity.

Now for the good news, all this destruction and denial of funds by the banks is building up a backlog of demand and this backlog will, in turn, create the fuel for the recovery/reinvention of the real economy. I hope that this sorry chapter will finally hammer home the fact that to have a sustainable economy we simply must make things. America cannot work by selling each other hamburgers and doing each others taxes forever.

[Myrina]

4. yes, same here ...

... although I'm laying the groundwork to start a NonProfit that I should have started about 5 years ago (I'm ridiculously lazy by nature, so every now and then the Universe has to kick me in the ass to remind me what I need to do).

Best of luck and success to you!! O8)

[kestrel91316]

5. Be sure you have a system in place to TEACH people how to sew and knit.

Very few people do either anymore. You want to take steps to increase your potential customer base.

Even I don't sew anymore. The Pfaff needs some repairs and money is too tight, and my skills are such that I really can't sew the kinds of clothes I wear to work, lol. Oh, for the days of jumpers and skirts and simple dresses......

[DBoon]

6. Good move

Not only should the real estate be more affordable, but hopefully people will be more inclined to make and repair their own clothes in these slow economic times

At least in LA, it appears knitting has an appeal to the young and "hip"

http://laist.com/2008/12/15/video_of_the_day_indie_rockers_who.php

[serrano2008]

7. You should go for it! And read the book Start Small, Finish Big.

It's about people starting businesses for $5,000 or less and turning them into very successful companies.

[Tashca]

8. Timing is everything

I agree with your assessment.

After the 1982-83 recession I started a business. Most everyone told me I was crazy and should wait until times got better. I'm glad I didn't listen to all the self proclaimed experts. As I look back in time this was the only time I could have made it work. If I had done it earlier it would have been a disaster...and the recession would have nailed me. If I had waited until better times it wouldn't have worked as well either. Doing it when I did gave me a chance. My competition was stuck with debt problems and too much overhead. They could not react to me. I went into this with the idea of having a low overhead operation and the business is still going strong today.
Financing was a problem. I had a partner and a silent partner who helped with inventory. I'm not sure I could have done it without the partnership for this particular business. It wasn't high margin and did require quite abit of inventory. I sold my share of the business in 1998.....Divorce does that.

Anyway.....I have been patiently waiting for another downturn and trying something I have always wanted to do. A few weeks ago I started approaching people about buildings and ideas. My gut instinct tells me the time is getting close. At this point in time I am aiming for this fall. I am going to try and set this in motion and let things fall where they may. Hopefully they will be positive. The hardest thing about doing what you are suggesting....is taking that first step.

Good luck and I hope it woks out for you!!!!!!!!!!!