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When is the right time for a startup?

Starting a business is not easy task. You will need to decide on your service or product offering, what your target audience will be and when it’s a batter time to launch. Approximate 62 percent of people in the U.S. want to become business owners. But how many actually know what it takes to start, run, and grow a business? And is it the right time in their life to begin one? Entrepreneurs cite multiple reasons for starting of their businesses, including disliking their current job, needing a creative outlet and just feeding a desire for more money. Regardless of what motivates you, the timing and reason for establishing a business must be purposeful. 

Here are few important steps and considerations to determine if it’s the right time to bring your business venture to fruition. 

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. In recent study published by startup-focused content site Failory found that 90 percent of startups fail. One of the main reasons cited was that the product was not a good fit for the chosen market.

To find out if there even is a market for your business, doing research is critical. According to the Small Business Administration (SBA), the keys to discovering your strengths and unique selling propositions, and ultimately identifying your target market such as:

• Conducting market research, including gathering demographic data on age, population, and wealth
• Analyzing consumer behavior or economic trends

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. 
• Since 2019, Tonita White, owner of Dopely Lit, had an idea to launch a home fragrance, with the goal of marketing soy-based candles to who she refers to as the "urban" consumer.  
• The busy mother of twins decided to start small and test the market by creating two fragrances. White then made a budget for supplies and opened pop-up shops. After trying her business idea and realizing that people loved her products, the entrepreneur decided to move forward in 2020. She developed a website and a social media presence to flesh out her business. In addition, White expanded her line to include a holiday fragrance and candle melts. 

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 difficult times, financial resources, and a network that will support your endeavor.

Time and Energy 

• While you may be anxious to get your business started, time is a crucial factor you need to consider, especially in regards to your home and professional life. 
• You should still believe in the value of your idea. Just consider how you can fulfill your vision in a more reasonable way. 

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. And as part of running your business, you will have recurrent expenses. The amount of money need to run your business depends significantly on the type of operation you are establishing. For example, an entrepreneur who is starting a blog will have very few expenses. Someone launching a business that requires a storefront or lots of equipment will need a business plan and good credit to finance of their idea. 

As you consider whether now the right time to start your business is, 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? 
• If your credit is not good, what do you need to do to build your credit so you’re ready to launch your business? 
• What startup 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)? 

You have 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, after all, requires dedication and understanding of your target audience, your industry’s economic outlook and your own financial capabilities. Nevertheless, strong business plan, complete with your competitive or market analysis, can reinforce your vision and help turn your idea into a reality at whichever time feels right for you.  

Network Support

The ability to network with others through social channels such as LinkedIn and industry-related professional organizations, for instance is crucial to starting a business.  Before starting a business, speak with the business consultant to help you make a wise choice, Satchell said. Entrepreneurship is a journey. Connecting with people in the right partnership will propel you to the next level. You need to meet the right people and make connections.”

Seasonal Considerations

The time of year may also influence your ability to start a business. Some people may start businesses at the beginning of the year because of the belief in a fresh start associated with a new year. Others, meanwhile, may believe that establishing a business should happen when the market is suitable to embrace their offering.  For example: if you are a baker, it makes sense to begin planning your business over the summer. By the fall, you can market your business offerings with tasting events in order to be ready for the holiday season.