Today’s market sucks.  Until the credit markets calm down and consumer spending picks up, the American Dream has spawned itself into a global economic nightmare.  However, there is hope.  In fact, there has never been a better opportunity to take on risk and start your own business.  In the words of the legendary Warren Buffet, “Be fearful when others are greedy, and be greedy when others are fearful.”

Right now, companies are operating in defense mode, cutting back spending and protecting themselves.  The same principle that Buffet is following as he buys billions worth of stock from frightened investors can be applied to market share.  Vast chunks of market share are being left defenseless as companies cut spending and slow down introduction of new products.  The entrepreneur who embraces economic efficiency and creativity and creates a successful company during a recession is going to have a major advantage when things start looking up.

The problem with all this is the credit markets.  Unless you are Warren Buffet, you are going to need money to get things off the ground.  Hesitant investors are going to lend to startups that offer high returns and low risk.  If you want to get funding, you are going to have to attempt a low cost entry into a growing industry.  Here are some ideas.

The Internet

The web is growing and the web is cheap.  I already talked about the web in greater depth here. Also, as much as I dislike some of the tactics used in affiliate marketing, it does allow a business to pull on a large pool of investors to fund advertising.  If you are actually selling a real product it is something to look into.

Clean Energy

Global demand for energy is going to continue to increase.  If I knew how to produce it cheaply, I wouldn’t tell you.  What I can tell you is that there are numerous emerging technologies that will end up curing our addiction to fossil fuels.  Wave Power, Solar Power and Wind Power are all poised to make big impacts in a big way.  If you know a cheap way to manufacture high strength fabric to be used in high altitude kites, do it.  If you are an expert in clean energy, start a consulting firm.  The money will be there for the taking.

Housing

Right now, the housing market is adjusting to the colapse of a massive bubble.  Its a disaster.  The big picture though suggests this is only a temporary problem.  The population is growing.  In the future, people will need places to live.  If people are panicking, you should be taking advantage.  Get into real estate now.  How you do it for cheap is up to you to figure out.

Asia

Right now, the money is in Asia.  China has spent the last 20 years turning itself into a manufacturing powerhouse, and Asian countries finance massive amounts of American debt.  Learn an Asian language and embrace the fact that when America starts paying off our $10 trillion in debt, you can take a piece of the pie because you know where its going.  Getting college interns to teach English in Shanghai wouldn’t be a bad idea.

Remember guys, when you are sharing ideas, always make the other guy sign an NDA before you talk about the really good stuff.