Actually, a few of my clients are taking advantage of reduced competition, gaining huge portions of market share rather quickly while so many believe the headless chickens and fail to act.
Now is exactly the right time to start a business. For most industries, if you wait until the market is "up" you'll face stiffer competition and will gain little market share, and your business will be less likely to survive the next "down." Millionaires are made during times like these.
Accquisition is different... and yes even real estate is a good deal now for that.
But that is not small business.
Small business's right now are coming into a time period where taxes are going to go upwards and the IRS is becoming very very.... and I do mean very...aggressive. Unless you have a crystal ball....I would wait. Of course there are always exceptions and that's why anecdotal testimony is not admissible in court....everyone has a story of a friend...right?
Overall, the climate is sour on small business. Until the health welfare is either codified or repealed...hiring is a crapshoot. Right now small companies are capping at 49 employees because 50 is the magic number for increased govt taxation on them. Unintended consequences of anything done by the govt. are alwayd hidden as much as possible.
Don't forget that Obama is hot right now for a VAT tax as well....hopefully he will come to his senses on that issue, but if he doesn't watch out...the environment for small business growth is very possibly going to get much more hostile than it is right now.