Is a down economy the right time to start an entrepreneurial venture?
The downside is running out of money/credit before your idea becomes self-sufficient, and the biggest risk of having that downside turn into reality is failure to properly plan and budget. However, I don’t think anything is insurmountable. It just means that you have to plan better and be more careful in your decision-making. I’m in this position right now, actually; I left a pretty well-paying job three weeks ago to throw everything I’ve got into building up my own consulting company. I’m giving myself a finite runway – when the money I’ve set aside to make this work runs out (if it runs out) then I’ll throw in the towel and go back into the “standard” workforce.
