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WSU Newsline: Recession? Maybe it's time to start a business
Wednesday, January 14, 2009 3:47 PM

The scripts are available for printing and for sound bite identification.

Go to http://www.wichita.edu/newsline to get the current Wichita State University Newsline. If you cannot access the Newsline at the Web address above, contact Joe Kleinsasser at (316) 978-3013 or joe.kleinsasser@wichita.edu. Newsline cuts may be edited to suit your needs. If you have additional questions for Tim Pett after listening to the WSU Newsline, please contact him at (316) 978-7114 or tim.pett@wichita.edu.

Background:
There are layoffs, rising unemployment and a recession. So what's an entrepreneur to do? Well, for some, a recession is as good a time as any to start a new business. Tim Pett, director of the Center for Entrepreneurship at Wichita State University, says there are ways that entrepreneurs can take advantage of a recession.

Voice wrap:
Announcer:
There's no shortage of bad economic news. But some entrepreneurs will find a silver lining amidst the gray economic clouds. For some, this may even be a better time than during years of smooth economic sailing. Tim Pett, director of the Center for Entrepreneurship at Wichita State University, says entrepreneurs see opportunity when they do some research and look at what's needed in the marketplace.

Pett: "Ways entrepreneurs can take advantage of the recession is to really do some research to understand what customers out there might want and provide those customers those services as well as businesses. Businesses still have to conduct the day-to-day operations, and being local might provide some benefits to those businesses."

Announcer: Not that starting a business in a recession is easy. Pett says one of the common mistakes entrepreneurs often make is developing, but not staying with, a business plan. This is Joe Kleinsasser at Wichita State University.

Sound bite #1
Pett says some entrepreneurs find opportunities during economic downturns. The sound bite is 18 seconds and the outcue is "very quick."

Pett: "So during economic downturns there seems to be this idea that you can't start a business and there's no opportunity out there. But entrepreneurs see opportunity when they do some research and look at what's needed in the marketplace. Entrepreneurs can be very nimble and very quick."

Sound bite #2
Pett explains what entrepreneurs need to consider before starting a business. The sound bite is 23 seconds and the outcue is "after their services."

Pett: "What do entrepreneurs need to know before they start a business? Well, particularly in these difficult times, they really ought to try to keep their costs as low as possible. And maybe if they're working currently, to continue working in that position until the business can sustain itself. And probably the most important thing is to go after the customers i.e., to network — because the customers probably aren't going to come after their services."

Sound bite #3
Pett looks at the most common mistakes made by entrepreneurs. The sound bite is 22 seconds and the outcue is "entrepreneurs."

Pett: "Common mistakes entrepreneurs often make is, they don't realize that the time/length for cash flow, that is, the time it takes for customers to pay for services. And the other mistake that we often see is they develop a business plan, but they often don't follow that business plan, and costs can shoot up, so some research in those areas will really help sustain those start-ups for entrepreneurs."

Sound bite #4
Pett shares an example of successful businesses that started during a recession. The sound bite is 18 seconds and the outcue is "GoToMeetings."

Pett: "Examples of successful business launches during downturns include a number of businesses that helped large corporations hold meetings without traveling and helped the corporations hold their expenses down, if you will, Internet meetings, GoToMeetings."

Sound bite #5
Pett offers advice for someone who thinks they have a good business idea. The sound bite is 24 seconds and the outcue is "those ideas."

Pett: "Advice to entrepreneurs who'd like to start a business but aren't sure whether in good times or bad: The first thing they need to do is some research to see if it makes sense. The second thing, you'd like to develop a business plan based on your ideas. And the third thing, and this ties in with the second thing, actually, is maybe talk to some potential customers and see if your idea makes sense to help solidify those ideas."

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Contact: Tim Pett, (316) 978-7114 or tim.pett@wichita.edu.