In discussing the status of their business plans with operational timelines, it is not uncommon for many entrepreneurs to voice their concerns over “the right time” to launch their great adventure. Most recently, with the downturn in the economy, many have erroneously assumed that we are in a “bad time” for such an activity. Nothing could be further from the truth.

If you think about it for a second, the financial picture could probably not be much better for a start-up. For openers, suppliers of rental space and equipment are already feeling the pinch and know that their competitive environment means lower rental rates.

So now space and office equipment is less expensive today than it was, say, a year ago. Another opportunity is in labor costs. As unemployment increases, there is downward pressure on labor rates.

Help is now cheaper. And this holds true for hourly employees as well as professional expertise. Finally, interest rates have continued to decline. If you need to borrow and have good credit, money is relatively cheap. This entire rosy scenario, of course, is predicated on two things: you have a product or service that uniquely satisfies a customer requirement and you know how to sell it.

Entrepreneurs and indeed many seasoned business people confuse a recessionary reduction in spending with “no spending.” They forget that in lean times many businesses are even more alert and receptive to products or ideas that can save them money. And of course, herein resides the challenge. You have to truly be able to demonstrate the savings and you have to be able to get this message to the right people. While this is always a daunting challenge, a little creativity can go a long way. And again, the market pressures that are now challenging traditional evaluation and purchasing decisions increase significantly the propensity for listening.

Credibility and sustainability are two major hurdles for every start-up in good times and bad.

Bad times and increased needs notwithstanding, no company is going to part with their increasingly precious dollars as long as there are fear and doubt regarding these two major obstacles. So how can a start-up deal with this?

I have found that the willingness to share in the risk goes a very long way in addressing these customer reservations.

When a start-up company commits to 100 percent satisfaction for a customer or the customer doesn’t have to pay, this speaks volumes about the start-up’s belief in their own value.

But the start-up has to recognize that in all likelihood there will be some problems with additional unforeseen costs. They need to anticipate that this first customer most likely will not generate any profit, at least in the short run.

By accepting this and then delivering on the promise of value, however, the start-up company can approach their second prospect with three achievements they didn’t have with their first: a track record of proven success, a satisfied reference customer, and the selling confidence of truly believing that they can deliver what they promise.

Combine lower costs with a better solution underscored by a newfound confidence and you have all the makings for an entrepreneur’s success. And if the pieces are all in place, there is no better time to launch than right now.

John F. Riddell Jr., director of the Center for Entrepreneurial Growth-Hamilton County, writes each Tuesday about entrepreneurs and their impact on companies and the marketplace. Submit comments to his attention by writing to Business Editor John Vass Jr., Chattanooga Times Free Press, P.O. Box 1447, Chattanooga, TN 37401-1447, or by e-mailing him at business@timesfreepress.com

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