Is there such a thing as a “best” time of year to start a business? That’s a query hundreds of thousands of entrepreneurs must be asking themselves as they consider the next steps in pursuing their dream of owning their very own business. And when we say “millions of entrepreneurs,” we mean literally hundreds of thousands.
The number of entrepreneurs looking to start a recent business broke records in 2023, with greater than 5.5 million recent business applications filed last year, according to data from United States Census Bureau. Because these entrepreneurs are considering not only about “what” business to create, they must also consider “when” to create it.
There is a strong argument to be made that early timing is when entrepreneurs are rewarded with tax and accounting advantages. This early timing can lead to less paperwork, lower costs, and fewer problems associated with starting a business.
In conclusion, it is price considering whether there are certain times of the year when starting a business is more useful than others.
Let’s take a closer look at each season to determine if there really is a “best” time to open a business.
Spring
Spring is coming on the heels of a long winter, and January is one of the busiest months for processing registration documents at Secretaries of State offices across the United States. Once the documents are processed, businesses that filed early are ready to open their doors to the public.
It may sound obvious, but the first few months of a business can determine its success or failure, and Spring is an necessary time for your startup to thrive. Seasonal business or not, for those that launched in the spring, this is the time to thrive.
Outside the US, spring is reportedly the preferred time to start a business in the UK. Aldermore Future Attitudes report revealed that in 2017, the UK small businesses launched in spring tended to overcome firms created at other times of the year.
Summer
For many, summer means a break to calm down. On the other hand, for entrepreneurs, summer brings a motivating rush of inspiration to start a seasonal business. The beauty of starting a summer business is that it’s a great time for entrepreneurs of all ages to throw their hats in the ring. An elementary school kid can open a lemonade stand, a college student can start the sporting goods company they’ve all the time dreamed of, and someone drained of working a 9-to-5 job can start a side hustle as a lawn care contractor.
The schedule is also quite flexible, as many seasonal businesses can proceed operations after the summer ends or resume operations the following year as part of the seasonality.
Autumn
Are entrepreneurs more productive in the fall months? According to research, the answer could also be yes.
Task management software company Redbooth announced some intriguing recent research in 2018. Four years of data showed that the average worker is more productive In fact, the average employee is 20 percent more productive in the fall than in the winter (in addition to 11 percent more productive during the same period than in the spring and 7 percent more productive than in the summer). The study also found that the most efficient months of the year are September, October, and November.
Productivity aside, what else does fall bring to business? It’s been speculated that the change of season itself could be a big motivator. Fall meant back to school for kids, and now it means back to business for adults. Summer offers ample time to focus on ironing out the kinks and kinks in your enterprise, ready to launch in the fall.
Winter
Many entrepreneurs add “starting a business” to their list of New Year’s resolutions and goals. They often use the first few months of the year to get a head start on getting their business off the ground.
However, we often recommend that entrepreneurs who plan to start a business at the end of the year consider consider late filing for their businesses, compared to a standard incorporation filing. Delayed filing allows you to file now and set an “effective” date about a month in advance. This is ideal for anyone forming an LLC or corporation for their business, because it ensures the entity can be approved and formed early in the recent year.
What if I am unable to resolve when to start a business?
Ultimately, there is no true “best” time of year to start a business, but there is also no “worst” time of year to be an entrepreneur. There are definitely advantages to starting a business during a certain season, depending on your specific business, but the neatest thing you possibly can do is prepare.
You will need to develop a detailed marketing strategy, start a companyapply for business licenses and trademarks, and file any other required registration documents. Once you’re done, sit back and hold on tight. You’re about to embark on the ride of your life!