When Is the Right Time to Start a Small Business?
Is There a Right Time to Start a Small Business?
When Is the Right Time to Start a Small Business?
Starting a business is never easy. You will need to decide on your service or product offering, what your target audience will be—and when it is a suitable time to launch.
How many actually know what it takes to start, run, and grow a business? Entrepreneurs use lots of reasons for starting their businesses, including disliking their current job, needing a creative outlet, or just feeding a desire for more money. Regardless of what motivates you, the timing for establishing a business must be thought out in depth. Recoup Business Support Centre was launched in November 2019, after Christmas that year the world entered the Covid 19 pandemic. Luckily, the board of RBSC had completed extensive research into the target market for the business, developed a strategic plan that set small targets for growth over the first couple of years. This plan was supported with a good financial analysis with minimal costs for the business.
Some of the key things that need to be considered are:
Research and Find Your Target Audience
At the heart of every great idea is who you intend to serve. Your target audience comprises the people who need or want your product or service, and, in turn, can help your business become successful. Over 60 % of new businesses close within the first three years so as you develop your business idea, survey your target audience often to understand how you can solve their problems and meet their needs. One such viable way to find your target audience is through social media groups.
Test Out Your Idea on the Target Market
If you have a business idea, but are not sure that it’s going to work, the best way to find out is to test the waters. In early 2019, RBSC board evaluated their market by offering free services to micro-SME’s. This included providing free courses to entrepreneurs looking to start their own business, helping them actually understand what it takes to start, run, and grow a business.
Do You Have the Time, Energy, and Resources?
If you are ready to launch a business, you will need to have time to devote to it, energy to push through challenging times, financial resources, and a network that will support your venture.
Time and Energy
While you may be anxious to get your business started, time is a crucial factor you need to consider, especially regarding your home and professional life. You should still believe in the value of your idea but always consider the importance of building a new business on solid foundations.
Financial Resources
How do you plan on funding your new business? For many entrepreneurs, launching a business will mean creating a budget for legal structure, operating costs, marketing, and supplies. As you consider whether now is the right time to start your business, ask yourself these important financial questions:
- How much money do you have saved to fund your business?
- What does your credit look like, and will it help or hinder you from starting your business?
- What start-up capital do you need to fund your business?
- What are your business expenses?
- How will launching this business help or hurt your personal finances (especially if you quit your job to start this business)?
Network Support
The ability to network with others—through social media or networks like peer-to-peer networks is crucial to starting a business.
You’ve Made a Plan
Whatever your industry, the best way to launch a business is by developing a robust and strategic business plan and being realistic in your ability to execute and sustain it. Running a business requires dedication and an understanding of your target audience, your industry’s economic outlook, and your own financial capabilities. However, a strong business plan, complete with your competitive and market analysis, can reinforce your vision—and help turn your idea into a reality at whichever time feels right for you.
