I've always found that large competitors tighten up and don't release progressive new products during downturns. At the same time, new/small competitors are reluctant to start. That means there's no better time from a competitive stand-point. Now, investors will be reluctant, but if you are in a position to not need investors (self-financed), then I think it's an optimum time. Once up and running, with products released, the inevitable rising tide of the new economy will float all boats. Continue keeping expenses low and other disciplines ingrained during the downturn, and ride the new tide up.