In 1997, tech entrepreneur Greg Gianforte started a company in an extra bedroom in his house. It became known as RightNow Technologies (NASDAQ: RNOW), which now generates more than $100 million in annual revenues.

Recently, I had a chance to talk to Greg. I asked him: Is it a good time to start a business?

His answer was simple: It's always a good time to start a business.

Going by the headlines, it's hard to believe that anyone would be interested in starting a business. Retail sales are crumbling, financing is tough to obtain, and there is a lack of confidence throughout the economy.

Yet it's during such times that can be ideal for starting a business. How?

Well, I had a chance to talk to Devin Jopp,the chief operating officer of SCORE, Counselors to America's Small Business. (Interestingly, his wife is currently setting up a new business.)

Here's what Devin has to say:

Deals, Deals, Deals: Everything is cheap right now, such as equipment, leases and even labor. With some negotiation, you are likely to have fairly low start-up costs.

Less Competition: Businesses are going bust. At the same time, fewer people are starting businesses. As a result, you may have an easier time getting customers.

Over the years, I've started several businesses. All in all, the process has been exciting. But, at the same time, there were lots of risks and frustrations.

So, if you're thinking about making the leap, what are some things to consider? Let's take a look:

1. Know your industry: I read lots of business plans. And, one common theme is: the entrepreneur has only a sketchy understanding of the industry and competition.

And, I think this can be a dangerous sign.

However, with the internet, you can get a great understanding of an industry. For example, you can look at trade association websites, industry publications and even government sources.

Finally, there's a good book on the subject: Successful Business Research: Straight to the Numbers You Need--Fast!.

2. Write an executive summary: With your industry research, this should be easier to do. Also, specify the business model (how do you make money?); the competition; a forecast and key milestones; and marketing strategies.

Make this simple and concise (hopefully the summary is only one page).

A few months ago I posted a story about a possible new niche organic food company I might invest in. The founder of the company was looking for seed capital and follow-on funding. He has been developing the product for several years and has most details of his business plan worked out. However, he has no funding as of yet, and while he has numerous connections in the food industry, he is light on all of the other things that go into the management and execution of the business. Based on four months of discussions and assisting him as part of his unofficial advisory board, we moved closer to striking a deal.

My own knowledge of the food industry is severely lacking, and I am not very well-versed in retail sales or distribution either, but many of our skill sets were complimentary. The founder is a family acquaintance (caution lights blinking) and I was interested in helping him out if I could. I do believe the business is viable.

We got into discussions more recently about whether to go public (penny stock) or stay private. The potential to raise capital using different approaches and, most importantly from my perspective, how critical it was to start up with a bang or take a go-slow approach. This proved to be one of our major points of contention. I was in favor of bootstrapping the company along and not taking on very much debt, funding growth out of profits. My associate wanted to scale-up fast and was willing to take on greater debt to develop a few additional products that he had in mind to expand the line, even before we had established the initial product in the market. While I credit him for knowing his industry and the potential market, my own general business principles started to be tested.

Since I could not offer much of my time, I introduced my entrepreneur friend to another good friend that does have the time, knowledge, capital, and experience to help with the execution of the business on a full-time basis. He was actually looking for his next venture and has a personal interest in gourmet food. His experience also includes business development and international sales for a Fortune 500 company -- perfect I thought. Just like the big venture capitalists, I would bring cash and business leadership and all would be right in the world.