When to start a New Business?

Starting a new business is not an easy task. You may think that if you have a good idea how to start a business, or you know what business to start is enough. Nowadays it is not so difficult to start a new business. Today’s consumers connect directly with brands on social media, where producers can advertise their products for free, and build audiences on a small budget. Whereas in the past companies had to capture their consumers’ imagination through paid ads. But 2017 gives them a chance to spend their money more effectively to target markets in different social networks. And there are lots of ways to raise money, attract more people to buy your product. You can run your business even when you are drinking a cocktail in Cambodia.

But before opening the doors of your new office, you have a lot of activities to do.  And you should choose the best time to start a business.

When to start a business?

Maybe after graduating from the university? After 7-10 years of work experience? People have different capabilities and different levels of energy. You know, to start a new business is like to start a new relationship. So, when you have time to devote your attention to it, it is considered to be the best time. That is to say, you should start a new business when you are able to focus on it. If you are now experiencing a lot of stress in your life, such as you are in the process of getting a divorce, or are moving, do not think about a new business. Starting a business is stressful itself, even if everything may go smoothly. It is better to put off starting a business until your life gets back on track.

Starting a business has nothing to do with your age. To point out, it is a matter of where you are in your life and whether you are ready for new achievements and failures.

The best time is…

When you are able to face new challenges and you are ready for new stress, you can start preparations for a new business startup. Not every person has the nerves and skills to be a business owner. Knowledge of the particular industry is not enough to be a successful businessman. Self–motivation and management, organizational and marketing skills, and, of course, the ability to deal with customers have a great role in bringing you success.

Financial situation matters

Your financial situation is the first thing you have to take into account when determining to start a business. Think how risky it can be to invest all your money. Be sure, starting a new business can take serious amounts of startup capital if you have to buy equipment, rent a venue and hire employees. Think if you are able to secure debt financing from a lending institution or financing from angel investors.

Do not forget about your family

If you are married, be aware that running a business is a family affair. Besides your financial considerations, you have to spend much more time on your job than any other ordinary employee. The time commitment, stress, and uncertainties of running a business can affect the relationship between you and your family members. Note, that involving family members in your business can also be very beneficial. Employing your children and/or your spouse both provides trusted help and has great tax advantages. If you hire your children as employees to do legitimate work in your business, you may deduct their salaries from your business income as a business expense.

And what do we conclude?

You need to take a number of steps to set up a business. First, do not start your business until you’ve written your business plan. Second, set money aside in savings so you can cover all your expenses until your business is on its feet. And think when it is the real time to start your business.

If you are waiting until you are truly “ready”  you will never do it. So, the best time to start a new business is when you are in a stable financial situation, have a plan for a good start. In short, you can start your new business when you are ready both morally and financially. Good luck in setting up a new business.


Armen Margarian

Armen Margarian is an attorney with The Margarian Law Firm.

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