Many experts agree that a recession does not equate to a moratorium on launching a new a small business or expanding a product line.

But ensuring consumers end up with a useful and differentiated product not an overwhelming mix is the key to success.

According to an article in the Globe and Mail, a unique approach, expanded service, superior packaging, better hours or any number of well thought out differentiators can help even a common product stand out, and potentially boost revenue.

But Saibal Ray, co-director of the master in manufacturing management program at McGill University, says entrepreneurs should tread cautiously.

"Always, more differentiation is better for revenue, but more differentiation increases your costs," Ray tells the newspaper. "People don't take that into consideration. They only think about revenue."

Careful consideration of what business products or services will most benefit customers at a manageable cost is key.

One business launched during a downturn, Moncton and San Francisco-based Flowtown, is already reporting initial success.

Co-founder Ethan Bloch credits some of the success to his firm's ability to provide small business owners with automated reports tracking website usage and marketing progress. This, he said, was an underserved market.

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