If you are thinking about going out on your own, there is no time like today. Unless…
Starting a business is an act of courage and daring. For many people it marks the realization of a lifelong dream. For others, it is an act driven by a strong compulsion and an innovative idea. Still others jump into self-employment out of necessity.
But is there a best possible time to start a business? A review of expert opinion on this subject is definitive: it depends.
Rather than combing through the stacks of small business how-to guides, find your answer by simplifying your thinking around a few key points. Focusing on your personal circumstances, the resources available to you, and the economic condition of your target market can provide the clarity a group of successful entrepreneurs cannot.
Be sure you have what it takes, personally
Many successful business founders say their mindset was the primary driver for starting their business: they had reached peak readiness. They had made the personal calculation that the risks they faced were worth the potential rewards. Many wanted to be sure they would have no regrets later in life; others had reached that later part of their lives.
Personal motivation is a compelling reason to start a business, and it can translate to a successful mission statement. Other personal factors to consider are your health, lifestyle, family situation, and general psyche. A tough, honest assessment is in order.
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Is there any reason why you could not give this venture all it requires?
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Do you have the stamina to see this through?
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Who is dependent upon your success?
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Do you have the vision and toughness it takes to lead?
Have resources you can count on
Even if you are starting a sole proprietorship, you should not be in it alone. Be sure you have a network of resources you can count on to assist you strategically, financially, and emotionally. In most cases, you’ll need to consult with a lawyer and accountant. You may need staff, or at least an assistant.
The amount of support you will require depends on your type of business, how quickly you plan to scale, and how you plan to fund your operations. All of this should be covered in your detailed business plan, which was hopefully the first step in your process. If not, enlist a resource to guide you strategically.
Know your market
Whatever business you plan to be in, you must thoroughly research your target market and determine the role your service or product will fill. Trying to sell to everyone is a losing proposition. Instead, carve out a niche for yourself among a well-defined group of consumers. Understanding who may buy from your company will define your initial marketing and sales goals.
You may find that your initial vision must adjust to new economic or geographic realities. Better to learn that in your initial planning stages.
Of secondary concern: The state of the world
Keep in mind that even if all the above factors point toward starting a business now, there are environmental factors to consider. You should reconsider starting a dine-in restaurant or a large-venue concert promotion company in the middle of a pandemic. But if either of those ideas is your dream, there may be ways to pivot the business model to accommodate world events.
Starting a business during an economic downturn can mean less competition for resources and more access to top talent. It can also mean interest rates are lower for startup capital, rents are lower, and raw materials are cheaper.
Success is possible even in a recession, and certain businesses can emerge to fill a specific need during economically and socially fraught times. Some people are even betting that entrepreneurship can lift us out of financial turmoil and usher an America 2.0.
Businesses can also fail during the best of financial times. The proper time to start a business seems to depend more on the specific business than the time. If you are ready, you can create your own best time.
More things to consider
Once you have given yourself a tentative go-ahead, check in with federal small business resources and your local chamber of commerce. You have many steps to cover, from choosing and registering a name (as well as a domain name, to establish a web presence), choosing a business structure and filing the appropriate forms with the right authorities, opening a bank account, securing a location, and applying for any necessary permits and licenses. If this seems overwhelming, business ownership may not be for you.
Accounting advice and financial consulting for your business
Franco Blueprint provides peace of mind for small business owners from the start by reducing financial risk, increasing cash flow, and ultimately, allowing them to focus on growing and managing their business.
If you are just beginning to plan or are ready to make the leap, Franco Blueprint is available to help you with your small business concerns. Reach out for a free consultation with one of our experts today.