Is it a good or bad time to start something new, with the economy tanking as it is?  I believe the answer depends entirely on your personal financial situation and risk profile.  If you have a family to support and only have enough savings for a few months, then it’s a terrible time to start.  If you can afford to fund yourself and maybe a few others for a least 6 months and possibly much more (or have friends who the “more” bit) then it’s a great time.  You can find talent (and space should you need it) much more easily when things slow down.  You can build a new service, launch it, acquire customers while others (including big companies) are retreating.  But you absolutely have to be able to stick it out, because this could take quite a while and if you don’t make it there is no easy fall back (like getting a job) when everybody else is hurting.