The controversy seems to continue daily about whether or not the recession is ending or now. For every signal of potential “green chutes” showing recovery, there are counter signals indicating a prolonged recession. Whatever the predictions are, there is one almost unanimous consensus and that is the fact that right now at this moment, consumers are not spending much.

Recently, the Travel Goods Association just released their Travel Goods Market report for 2008. They state:

The perfect storm of soaring energy prices, new airline restrictions and the bad economy took its largest toll on luggage sales. TGA estimates that luggage sales fell 18.2% by volume and 21.0% by value in 2008. The average price for luggage slipped 3.5% as those few consumers still buying luggage chose to buy at lower price points than in past years.

So with the economy in a recession and huge declines in luggage sales particularly with higher price point items, why in the world would someone think about starting a premium suitcase company for kids?

Well, there are many factors but ultimately five main reasons for starting now as opposed to waiting.

1. You never know when that kernel of an idea may strike and you really have no control over macroeconomic factors.

2. A recession forces discipline: Being in a recession forces us to manage our budget very tightly and grow at a slow and steady pace. This disciplined approach to running a business is actually healthier for a small start-up with very limited capital.

3. Less demand slows down competitors: In a down economy, larger more established brands are heavily focused on their expenses, cost cutting and trying to squeeze out every dollar they can through promotions. The overall market is shrinking so there is excess supply. Many companies will become much smaller and some won’t survive. We believe our premium kids travel products are serving an unmet need in the market place. It may very well be possible that developing high end luggage for kids was on some sort of strategic plan for a larger known brand. However, given the recession, risky expansion concepts like premium kids luggage will most likely take a back seat. This gives us more time to grow our brand and establish dominance in the niche category. We view this recession as a window of opportunity to launch Jr. Luggage and create a well known brand that stands for quality kids travel gear and accessories.

4. Big fish, small pond: If we had major investors with deep pockets pushing for growth, the current economy would be a major challenge to growing rapidly. It would be much more difficult to launch a brand and grow it to $100 million today than even just five years ago. However, like most small businesses, our funds are rather limited. While the overall market pie is shrinking, we don’t need a big piece of it. We’d settle for just a small sliver. Our focus is solely on quality kids travel gear. Not adults, not seniors, not business travelers… just kids. Our brand is all about kids. We want people to hear ‘Jr. Luggage’ and think, “Oh yeah, that is the company that makes amazing travel gear for kids.” This lets us stay focused on what is important such as service, kid oriented product development and outstanding quality. By finding a unique niche, not only are we a big fish in a small pond, we actually create and define our own pond.

5. A recession doesn’t mean ‘no’ buying: Sometimes when you watch the news, you get the feeling that absolutely no one is working or buying anything. The fact is people are still buying. People are just buying less and what they do buy tends to provide better value. Value also doesn’t necessarily mean lowest price. A well made $175 suitcase can be more valuable than a $50 mass department store suitcase if you end up having a frustrating travel experience and need to replace the $50 suitcase every year. Also, there is still demand for outstanding quality and service. That has always been the case and most likely will continue. If you strive to provide the best available product or service, there will be a market for it.

In the end, many people have ideas for starting a business and there are no shortages of excuses to procrastinate. We can’t let our fears overcome that entrepreneurial spirit. The stats of actual successful businesses can be scary. I’ve read that 95% fail within 5 years. However, the 5% that succeeded would not have happened if they sat back and decided not to start their business. Take lessons from this recession to focus on running your business smartly, providing outstanding service and fulfill your brand promise. There is no such thing as a perfect time to start a business because we can’t control tomorrow. That perfect time is now.