Its tougher out there right now, have no doubt. Even in the lucrative villages I notice it. The pensioners savings rates have been slashed, it goes down the line.
You could set up now, it would be tougher though. Window cleaners springing up due to redundancy, so plenty of canvassing going on. Setting up WFP would be even tougher, personally if your going residential only I wouldn't go that route. Keep your overheads to a minimum, and give the customers the option most prefer.
I don't know if its just me, but the past few weeks has seen a fairly substantial rise in residential enquiries. Small commercial is in the gutter though, many are suffering. Shops still need them doing, but huge competition. My business is strongest in the villages where there is money, but even then not back to pre recession standard.