Of course, there is no exact answer to this question. Arguably, there isn’t a right time.
The best answer to the question lies in answering several, other questions:
- Why do you want to start a business?
- What led you to this point?
- Is finance a barrier?
- Is my age an issue?
- Is it a good idea to start up in a global pandemic?
Why do you want to start a business?
For some people, the decision to start a business is brought on by less than ideal circumstances, such as redundancy. For others, they are ready to take the short-term risk for the long-term benefits.
It’s probably not a good idea to rush into a new venture just because you feel trapped or anxious. Yes, your current job/boss might be a nightmare, but wanting to escape isn’t a reason to rush into a life-changing decision without carefully thinking through the issues involved.
In short, be self-aware. Go into this with a purpose and consciously. Understand your motives, do your research and prepare a business plan.
Be realistic, but don’t be intimidated
Yes, it’s a massive step. Yes, many people try and fail. But others succeed, so why can’t you?
You will feel uncertain, but if you’ve concluded you have the qualities to succeed in business then why not?
Be ready to deal with people (often family and close friends) who sow doubt. You’ll need to fight these feelings. But if you’ve got to the stage where you feel you really must do it, then go for it.
Is finance a barrier?
If you have substantial personal savings or access to third party funding, this may not be an issue.
For most start-ups, the key barrier to setting up is often financing the business in the initial phase. If so, have you considered starting your business as a part-time enterprise, whilst you continue with your job.
Many start-ups start from the kitchen table. Once you’ve set up the basics, made some mistakes and grown in confidence you can then ‘upsize’ the business and go full-time. Clearly, your evenings and weekends may well be taken up by this effort, but if you really want this you won’t see this as a sacrifice.
Certainly, take financing seriously. Ask yourself, how do you plan to fund the business and your life? Be conservative here – consider all business costs and your living costs.
Consider the impact of worst-case scenarios over the first year – does your budget enable you to weather these difficulties?
Is my age an issue?
Absolutely not. Entrepreneurs come in all shapes and sizes, young and old.
But your experience is.
So, if you’re a very creative 18 year-old who has a great business idea but little experience of finance and business, be honest with yourself and find someone to help you.
If you’re much older and have lots of business experience but know little about say digital marketing and social media, again swallow your pride and ask for support.
Yes, we know that these are stereotypes but you get the point. Be honest about your skillset, your qualities and the help you need to succeed.
Is it a good idea to start a business during a global pandemic?
That depends on the business.
It’s probably not the best time to invest your life savings into a new bar or restaurant in a COVID hotspot! But what about a small brewing business that delivers craft beer to peoples’ home, or a restaurant-quality home-delivery food business.
We certainly have clients which have pivoted their businesses during the COVID crisis, at a time when all looked very bleak, and have now come through the other side.
Further, many successful businesses started up in previous crises such as the Global financial crash of 2007/8.
Crises and times of great change offer great opportunities as well as risks. This crisis has already created big winners and losers, “villains” and “heroes”!
So, whilst the current crisis should make you think carefully about risk and uncertainty, it shouldn’t stop you pressing ahead if you believe you have the right idea, the vision and determination to succeed.
If you are thinking of starting a business, check out our Insights on business start-up tips and the qualities needed to start a successful business.
We are a firm of specialist small business accountants. If you need start-up accountancy, tax and business advice, get in touch for a no-obligation, free discussion – see our Contact Us page for how to reach us.
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Information in this publication is intended to provide only a general outline of the subjects covered. It should neither be regarded as comprehensive nor sufficient for making decisions, nor should it be used in place of professional advice. Whyatt Accountancy and the writer accept no responsibility for any loss arising from any action taken or not taken by anyone using this material.