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There is no perfect time to start a business. I know. Growing up in a family business, I at all times thought I wanted to own my very own business, but I used to be waiting for the perfect moment. Then I got fired from my job at radio and had to resolve what to do. Was I ready to take on the role of a business owner? Did I have enough experience? Where would the startup financing come from? Did I would like to own one or did I just fall in love with the American dream of being a business owner?
The hard truth is that the majority people shouldn’t start a business because they have unrealistic expectations and have not done the exertions to make it successful. Statistics confirm this. According to US Bureau of Labor Statistics“20% of new businesses fail within the first two years, 45% within the first five years, and 65% within the first ten years.”
I have been operating on the market for over 35 years, which puts me in the category of only 25% of corporations that have been operating for 15 or more years. Am I smart and glad? Or perhaps a little of each? I consider that small businesses could significantly increase their probabilities by starting the right business at the right time and taking the right steps.
The right business
Ideally, you need to consider two things. First, the style of business you run. The right business for one person is very different from the right business for one other person. In my case, my broadcasting experience was a great foundation for starting a media production company. I worked for several television stations in various positions, so I understood each the production features, which will be compared to other businesses, and the financial considerations.
When you begin a business in an industry where you know you have an advantage, you recognize the opportunities and pitfalls. You can turn into an established leader faster than someone just starting out. You might also gain recognition or awards that provides you with quick credibility. In my case, I have won over thirty television awards, which proves that I’m a seasoned skilled.
Side note: I know individuals who have had success starting businesses without having any specific product or service knowledge. However, these are well-educated entrepreneurs who can successfully run their business and have found others with skills and industry knowledge. Becoming a franchisee is one other way to start a business because the franchise owner has prepared products, systems and training to provide help to get began faster.
The second thing to consider is the passion and level of commitment of the business owner. Even competent and prepared people have to work hard in the first few years to lay the foundations. Business owners know this implies missing family events, working long hours, and putting a refund into the business somewhat than putting it in their pockets. If you have a passion for business, it is easy to develop it. If you do not do this, resentment builds and the company suffers.
The right time
You might think that the timing is about the age at which you begin a business. Is not. Entrepreneurs start a business at any age. Over the years on Shark Tank, we have seen many young people and their parents trying to find investors for their corporations. You could argue that the business is really the parents’ idea, but that is not at all times the case.
At the other end of the scale are encore entrepreneurs. These are successful business owners who sold their corporations and couldn’t sit still, or who left corporate America and struck out on their very own at the end of their lives. Of course, many people starting businesses are millennials and Gen Z. The time is right at any age.
What is more vital is whether the product or service is market ready and there is demand for it. Media production as an industry has been in constant demand since I began, but it became much more popular during and after the pandemic as people needed to communicate but didn’t want to travel or meet in person. Many side activities have grown in popularity and there is still room for latest entities. But others have crowded fields. It’s vital to look at the competition and see how your offering stacks up. Is it different, higher value or more convenient?
One very last thing to consider: sometimes you are so far ahead of the market that you just need to do greater than just sell; you wish to educate and create demand. Think about it. Things like computers, meatless hamburgers, and even cat litter have modified or created an entirely latest industry. Times are difficult here. Apply too early and it takes a huge amount of resources to get noticed. Too late and you possibly can’t catch up.
The right steps
Benjamin Franklin said it best: “If you fail to plan, you plan to fail.” To achieve success, you wish to take the right planning steps. You have to do the tedious work of making a business plan. Here’s your motion plan for starting, running and growing your business. There are many different templates and resources to create a plan, whether you are starting a traditional business or a lean startup. Just select the one that meets your needs. You also need to find and surround yourself with a great team of advisors, including a business attorney, a financial specialist, an insurance and risk management team, and more.
Take your time with these steps. They laid the foundations for overcoming adversity and developing a great business.