One of the questions that a lot of graduating college seniors are asking right now is whether they should consider starting their own business. I started this business in November 1991 so we were on the verge of going to war with Iraq and businesses were very reluctant to spend any unnecessary money, many had hiring freezes, and few were hiring or advertising. It was a terrible time to start a business yet I did so because I had done my research and my downside was very, very limited. The business had virtually no fixed costs so all I needed to earn was what I needed to eat.

There is no perfect time to start a business but there are some times which are easier. In the short-term, you're better off starting a business during a strong economy as you're more likely to cover your costs and perhaps even earn a profit. But you're also likely to be less appreciative of the need to conserve cash and watch your nickels. In the long-term, you're better off starting a business during a recession because you're forced to learn to be frugal and all successful entrepreneurs are frugal.