James Humphrey and Travis Alton hold out one of their prized hot dogs from Capital City Hot Dogs, their company. They started the company after their got laid off from their jobs.
Recession: Time to start a business
Work for yourself, it's the only steady income
Updated: Tuesday, 21 Apr 2009, 6:01 PM CDT
Published : Tuesday, 21 Apr 2009, 4:16 PM CDT
(NBC) - Recessions may seem like bad business for everyone, but several giants of business were founded during down times such as Hewlett Packard , FedEx and Trader Joe's .
So if you find yourself unemployed and ready to go out on your own, know that with the right planning, and a balanced, realistic approach, you may just find your biggest success during a downturn.
Before you start working for yourself full-time, make sure to maintain some cash flow maybe working as a consultant or freelancer.
Bringing in income, even if it's just to cover monthly bills, will protect you from what brings down too many start-up businesses, too much debt.
The income will also help when it comes to getting the loans you might need to get started. Some other important steps to keep in mind are to keep diligent records of your business expenses and make sure you keep them separate from your personal expenses.
Also, research what is the best legal structure for your business. Should you be a sole-proprietorship, an LLC, or Inc.?
Incorporating yourself will protect your personal assets from the courts and favors you when it comes to filing taxes. For more information on incorporation and small business loans, head to the Small Business Administration Web site .
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