When is it Best to Start a New Business?

Are you itching to start your own business? Have you been dreaming about being the master of your own time? If so, there’s good news for you. Building your own business can be an exciting opportunity in the present times, thanks to all the modern tech and tools at your disposal. 

Each year, the number of new businesses cropping up worldwide is growing by the thousands, and unfortunately, not all of them are successful. In fact, statistics suggest that 60% of businesses in Australia fail within the first three years. However, it doesn’t mean the scene is all gloom for someone wishing to start a business. If done cleverly and do the work, you can beat all the odds and end up in the successful 40%.

Interested? If so, read on and understand what you need to do when starting a business:

The Offering

It now makes more sense to go for specific unconventional business options and not the more traditional businesses. To ensure success, the first step when starting a business is to be aware of all the changes to your market and wider society during the pandemic. You should be clear about what you offer to the clients and how it differs from the thousands of alternatives – effectively presenting your USP (unique sale point). Understanding and providing a clear and honest pitch of the services/products you can offer is the first step in establishing your own business!

Market Research

To get a better understanding of your own business and services, you should conduct thorough market research to find out who your customers are, how you will find them, and, more importantly, how they will find you. Once you have a solid idea of these considerations, it can become easier to think about the costs involved and hash out fair pricing and offerings for your customers or clients.

Calculating Costs

This is the part of a new business that can make or break you. Considering and being mindful of both incoming and outgoing costs for the outset of your business will not only provide you with a clear plan on your expected income and desired growth, but also your starting limitations and help you be honest with your new clients. Don’t ignore even the most minor expenses while calculating the overall costs, as even the smallest sum when added up over the lifetime of your business could prove too costly an oversight in the future.

Creating a Financial Forecast

Once the costs are figured out and you have a good understanding of what you can offer your clients, you can create a financial forecast and model it to see if it is viable. Your business goals should be aligned with the forecast, giving you an idea of where you will end up in a few years.

Finding Success is a Long Road

Finally, don’t expect your business to be an instant success. There are no shortcuts to success. While it’s true that some new businesses can make a profit from their first year itself, it’s not a guarantee and this could simply be due to your industry or style of work. It could take you a couple of years to make profits, and it may be even a few more years after that before you can call your business successful and profitable. But it is absolutely doable, and there are several successful businesses around us to draw inspiration from.

The key to success often lies in the small things, such as staying invested in your business despite minor setbacks and having the patience and dedication to see your plans through to the finish. If things don’t go your way, take a break to analyse the situation, and find solutions. Never be too proud to accept if something is wrong – when you pause to learn the lesson you can move on stronger than ever. Be aware of the pitfalls and be ready for them, and at times this means being willing to change with the market, industry or times.

Now that you know the first steps when starting a business, there is no better time than now to start it!