When is the best time to start a business?January 30, 2017
When is the best time to start a business? When should you take the plunge, so to speak? The short (and annoying answer) is of course, when you’re ready. But being “ready” is different for everyone. Here are a few things to consider:
- Replacing your income. Most budding entrepreneurs already have a job. Are you dependent on the income from that job to meet your monthly expenses? I’m a firm believer in putting your family first, so if quitting your job would put your family is serious financial jeopardy, you need to create a business that starts replacing your income before you quit your job.
- There’s never a perfect time. “I’ve got this great business idea and I’m going to pursue it, but I’m just waiting for the perfect time.” Those are the words of someone who will never realize that dream. Are there better times than others to start your business? Of course. But there’s simply no perfect time.
- Start smart. This is something that I passionately believe. You need to know more than your competitors. You need to have already spoken to your business attorney. You need a good CPA. You need to know your market. You need to estimate your income and growth potential. These are requirements for starting smart. Do you know how many times I have counseled a business owner that’s two years in and they tell me that they wish they had met with me before they started their business? Too many times. It is ALWAYS easier and less expensive to do something right from the start.
- One caveat to starting smart. Starting smart, does not mean starting perfectly. Gen. George S. Patton said, “A good plan violently executed now is better than a perfect plan executed next week.” Ok, so if you can actually have a perfect plan next week, maybe that’s worth waiting for. But, almost always, that perfect plan never arrives. It’s perpetually a week away from being perfect.
So, at some point, you have to “take the plunge.” Be ready, be smart, but above all, DO IT! You will never realize your dream if you don’t start. When you’re ready to get going, contact us!