When Is the Right Time To Start a Small Business?
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According to a Vistaprint study, 62 percent of people in the US want to become business owners.1 But how many really know what it takes to start, run, and grow a business? And is it the right time in your life to start one?
"Not all ideas are unique and they are not given to one person," said Toni Coleman Brown, founder of Network for Women in Business, in an email interview with The Balance. “It's the person who acts [who] ultimately wins. So once he has an idea, he should act on it. "
Entrepreneurs cite many reasons for starting their businesses, including dislike of their current job, the need for a creative outlet, or simply fueling the desire for more money. Regardless of what motivates you, the time and reason to start a business should be objective.
Here are some important steps and considerations in determining whether the time is right to complete your business venture.
Search and find your target audience
At the heart of every great idea is who it is intended to serve. Your target audience understands the people who need or want your product or service, and in turn, it can help your business succeed. A recent study published by startup-focused content site Failory found that 90% of startups fail. One of the main reasons cited was that the product was not suitable for the chosen market.
To find out if there is a market for your business, it is essential to do some research. According to the Small Business Administration (SBA), the secrets to uncovering your strengths and unique sales propositions and ultimately identifying your target market are:
Conducting market research, such as collecting demographic data on age, population, and wealth.
Analyze consumer behavior and economic trends.
As you develop your business idea, frequently research your target audience to understand how you can solve their problems and meet their needs. A viable way to find your target audience is through focused groups on Facebook.
For example, Jazmine Thompson established her vegan hair care brand Winnie & Co. after finding no moisturizing products for her daughter's hair.
"In my quest to find the right product for my daughter, I realized that other mothers were having the same problem," Thompson said in a telephone interview with The Balance. To develop his vegan hair products for young children, Thompson used her membership in Facebook parenting groups to communicate with other moms and get feedback on her needs. This, in turn, inspired her to put her thoughts into action and start her business.
Test your idea on the target market
If you have a business idea but aren't sure if it will work, the best way to find out is to test the waters.
In 2019, Tonita White, owner of Dopely Lit, had the idea to launch a fragrance for the home, with the goal of selling soy-based candles, which she refers to as the "urban" consumer.
"I kept coming back to the idea of a line of fragrances for the home," White told The Balance in a recent telephone interview. "I needed a creative outlet and I wanted it to be something that I loved and liked."
The busy mother of twins decided to start small and test the market by creating two fragrances. White then budgeted for supplies and opened pop-up stores. After testing her business idea and realizing that people loved her products, the entrepreneur decided to move on in 2020. She developed a website and social media presence to build her business. . Additionally, White has expanded her range to include a Christmas fragrance and melted candles.
Do you have the time, energy, and resources?
If you're ready to launch a business, you'll need time to put in it, energy to deal with tough times, financial resources, and a network to support your business.
Time and energy
While you may be eager to start your business, time is a crucial factor to consider, especially with regards to your home and work life.
For example, let's say you're a stay-at-home mom with young children but don't have many childcare options. Starting a business that requires you to be available to customers around the clock may not be a realistic option. Or, if you have a demanding profession, launching such a demanding business can quickly wear you out.
You still have to believe in the value of your idea. Consider how you can more reasonably fulfill your vision.
If your hours are limited due to other responsibilities, establish a workable and efficient schedule to run your business. This will help you feel motivated to stay in business while managing your operations effectively.
“Patience is important,” Teresa Satchell, business strategy coach and founder of Kingdom Legacy Partnerships, said by phone with The Balance. “There are seasons in life and seasons in business. Due to life or circumstances, you will have to adjust or provide fewer services, but that does not mean it stops. "
How do you plan to finance your new business? For many entrepreneurs, starting a business will mean creating a budget for legal structure, operating costs, marketing, and supplies. And as part of running your business, you will have recurring expenses.
The amount of money you need to run your business depends significantly on the type of operation you are setting up. For example, a business owner who is starting a blog will have very little expenses. Still, someone starting a business that requires a store or a lot of equipment will need a business plan and good credit to fund their idea.
When considering whether now is the right time to start your business, ask yourself these important financial questions:
How much money have you saved to finance your business?
How is your credit? Will it help or hinder you to start your business?
If your credit is not good, what should you do to increase it and be ready to launch your business?
What startup capital do you need to finance your business?
What are your business expenses?
How will launching this business help or hurt your personal finances (especially if you quit to start this business)?
The ability to interact with others, through social channels like LinkedIn and industry-related professional organizations, for example, is crucial to starting a business.
"Before starting a business, talk to a business advisor to help you make the right decision," said Satchell. Entrepreneurship is a journey. Connecting with people in the right association will take you to the next level. You need to find the right people and make connections. "
The time of year can also influence your ability to start a business. Some people may start businesses at the beginning of the year because they believe in a fresh start associated with a new year. Others, in turn, may believe that the establishment of a business should happen when the market is suitable to cover their offering.
For example, if you are a baker, it makes sense to start planning your business during the summer. In the fall, you can market your business offerings with tasting events to prepare for the holiday season.
You made a plan
Whatever your industry, the best way to launch a business is to develop a strong, strategic business plan and be realistic in your ability to execute and sustain it. After all, running a business requires dedication and understanding of your target audience, the economic outlook of your industry, and your own financial capabilities.
However, a solid business plan, complete with your competitive and market analysis, can reinforce your vision and help you bring your idea to life at the right time for you.
We hope you enjoy watching this video about how to create a company
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