“Start a business? Now, during the economic downturn? Surely you must be crazy!” You’ve probably heard this from plenty of friends and family members, but you know when you’ve got a winning idea. The rub always comes when you’re trying to actually implement that idea, of course, and a small business could quickly turn into a large money-pit if you’re not careful. As it turns out, a poor economic climate is a fine time to explore innovative new ideas in a less competitive environment. Here are a few stories from real entrepreneurs who had the guts to pursue their passions — economic downturn or not!

Sometimes it’s hard to predict where you’ll find your niche, so it’s a good idea to create a small business startup that encompasses a couple of different areas. For example, Dan Wiley, a 48-year-old first time entrepreneur, started a Los Angeles based firm that provides a range of services from public relations and advertising to branding and internet design. “I never expected we would be doing as much website designing as we have been, and that so few customers would be looking for our public relations services,” Wiley admits. His advice to aspiring innovators is to save up a year’s worth of operating capital to cushion the blow, should things not work out as anticipated.

A successful small business doesn’t happen overnight, warns Doron Reuveni, a 42-year-old who provides testing services for software, Internet and mobile application companies. Reuveni began the business in 2008 after securing $2.3 million in venture capital and angel investor funds, then another $5 million from independent investors. The biggest hurdle may be convincing investors that you’ve got a worthwhile product or service. “I’ve had this idea since early 2007,” says Reuveni, “but without investors, it was difficult to it get off the ground. It might take a little longer to get your business going, but be persistent.”

Most small business startup tips seem to center on finances. Taylor Spellman, a 25-year-old who began a NY interior design shop, admitted that his vision was not fortuitously timed. Just as he was pitching to young professionals in the finance industry, “many of them lost their jobs, or never got those bonuses,” Spellman explains. As a result, he had to cut his fees from $100 down to $50. “Be sure to have some money in the bank as a cushion,” he advises. “If you’re not willing to go into debt, this probably isn’t the right time to start your own business.” Perhaps this is the cautionary tale many eager entrepreneurs skip over with their market plans. With 3/5 of small businesses failing within the first few years, the statistics certainly aren’t in your favor; but with enough capital and enough patience, you can still realize your dreams.

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