Is now the right time to consider going into business?

Is now the right time to consider going into business?

While it is true that in a recession people spend less, it also costs a lot less to buy and run a business, which means setting up in business now could be the smartest move to make says Michael Fresnel, Principal, NZ Accounting.

"In my view the recession has turned and we're on the way out, but it's still going to be another 3 - 5 years before we're back to business as usual. I suggest that setting up shop now, if done right, is smart business."

He believes it is about employing the right strategies today for the future - and it's a simple formula.

"Simple, efficient, low-cost businesses will survive this next phase well - and if you're setting up now with that in mind, you'll be ahead of the game. Focus on fixed overheads, wages, and set up costs - all of which are easy to manage. Simply, it's a buyer's market."

The hardest part for new business owners will be to take a firm line when it comes to managing costs and to be prepared to go elsewhere to get the best deal - but failing to watch the pennies now will mean risk longer term, says Fresnel.

"Now is the time when the squeeze really comes on, and businesses that are too close to the line are either reinventing, selling up or going under. So take your time, buy right, hunker down and wait for the wind to change. After all, what goes down, must go up."

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