When Is the Right Time to Start Your Own Business?
- June 18, 2020
- Starting Your Business
- 9 min read
You're our first priority. Every time.
We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.
So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Bottom line? We’re on your side, even if it means we don’t make a cent.
More than 500,000 new businesses open in the U.S. each year. While not all of those businesses are successful, that number proves that there are hundreds of thousands of passionate people wanting to bring their ideas to life every year.
If you’re thinking about starting your own business, it’s likely you have that same passion for a particular, product, service or idea. But, there are risks in starting your own business, especially if you jump into it before you’re ready.
When thinking about starting a business, it’s important to have a checklist to make sure you’re covering all of your bases. So many businesses fail within their first year because passionate people with great ideas don’t make sure it’s the right time or place for their venture. Your business checklist should include things like:
- The type of business you want to start
- Your business/brand name
- A business plan
- A location (some states are better for starting a new business than others)
- Finding a lawyer and an accountant
And that’s just to start. So, if you’ve got the passion and a great idea, that’s a good place to begin. But, if you truly want your business to be successful, it’s important to know when the right time really is to make the leap. How can you know when that time is? Is now the right time or should you wait. Keep reading to get the answers.
When the Environment Is Right
While there is no perfect time to get your business off the ground, you’ll have a better chance of success if you’re aware of the economical environment at any given time. For instance, the unemployment rate for April 2020 was over 14% according to the Bureau of Labor Statistics and some experts expect that number to increase for May and June 2020.
Because of the COVID-19 pandemic, thousands of people across the country lost their jobs. Small businesses have had to close down for months and some of them may never reopen. If you’re thinking about starting a business now, you have to consider the fact that we are currently in a recession, and some states aren’t fully “open” as of yet.
So, while you might be able to find recently out-of-work people who are looking for a job, it’s not the best time to open certain types of businesses. But on the other hand, if you’re looking to launch a business with low overhead, such as consulting on a topic you’re an expert it, now could be a great time to start — especially if you find yourself unemployed. It all really depends on your business idea and how it fares in this new world. Only you know if now is the right time to open your business, but you can use facts and research to back up your gut feelings to make a holistic decision.
That rule of thumb goes for the economic environment at all times, not just in the wake of a pandemic. You have to be aware of whether people are spending money and where they’re doing it. It’s also a good idea to consider what type of business you want to start, and how it might fare given the current state of the economy. Right now, when so many people are struggling financially, they may not want to spend their money as openly, so you may want to hold off on getting started.
When You Have the Skills
Some small business owners try to do it all, and that’s not realistic. It’s also not good for your business in general to have a leader that wears too many hats at once. There are so many moving parts and components to a successful business, and you either have to have the skills to conquer them all or have the right team to work alongside you.
One of the most important skills to have when you’re starting your own company is business management. Business management allows you to be a leader within your company, guiding others, and driving home every aspect of your bran from the inside out. Some of the most important business management skills include:
- Technical skills
These skills will help you to manage the inner-workings of your business while allowing you to choose the best employees to fill in the gaps.
When You Have the Right Team
Speaking of the right employees, they will be the driving force that keeps your business going. Before you start your business, you’ll need to conceptualize what type of employees you’ll need. Will you have to hire mostly full-time workers? Will they be able to work remotely? Are you willing to hire contractors? Can you go it alone? You need to think about these things before you start your business. You may even realize the right people are already in your life and may be willing to work to support your dream from day one.
Understanding the different types of employees can help you to learn what sort of benefits you’ll need to offer and whether you should offer salary or contract pay. While it might seem like an easy task to find employees, it isn’t always as easy to find the right ones for your business.
When you’re thinking about hiring someone new to your business, use a strong recruitment process to get the best possible candidates. When you’re hiring for a new role, post a descriptive listing on sites like Indeed.com and LinkedIn, and review and shortlist applicants in a timely manner. From there, you can continue to screen and interview the candidates you’re interested in, run background checks, and eventually hire the best possible people for the position(s) you’re offering.
The Bottom Line
So, when is the right time to start your business? Obviously, it’s a very personal choice. But, if you’re aware of the state of the economy, you have the skills to manage your business, and you have the right team working with you, you can feel confident in getting your business off the ground and gearing it up for success.
More From Seek
- Questions to Ask Before Starting Your Own Business
- Profitable Online Businesses Anyone Can Start
- 6 Mistakes to Avoid in Your First Year of Business
Photo credit: Jacob Lund/Shutterstock.co
Best Startup Loans of 2020 - Get Between $5,000 and $500,000
Get more great articles straight to your inbox!
Let us make it up to you with better articles straight to your inbox.
Recommended For You
Small business owners have to continually seek out new business to grow, while continuing to offer value to existing customers. Growing too quickly or too slowly can both have repercussions, so having a game plan on how you are going... Read More
- July 2, 2020
- Growing Your Business
- 8 min read
As an entrepreneur starting your own business, there will come a time when you must consider getting a business loan. Taking out a loan may seem nerve wracking but with the right tools and knowledge, it can actually be pretty... Read More
- July 1, 2020
- 7 min read
Outstanding invoices can be frustrating for small businesses. Although you know that the money for the invoices will get repaid at some point, if you have customers who are slow to pay or have long repayment terms, your company’s cash... Read More
- June 30, 2020
- Small Business Finances
- 10 min read
There are plenty of traits that entrepreneurs claim are responsible for their success — determination, persistence and taking risks are common among business owners. But just as important as these traits are, entrepreneurs need to also have certain sets of... Read More
- June 29, 2020
- 13 min read