3 Reasons Why It’s the Best Time to Start a Business
Starting a new business takes a lot of planning and research, but one of the questions I get asked most is, “When is the best time to start a business?” And while there is no clear-cut answer to this question, I believe that right now is one of the best times in history to start a business. Why? Let’s talk about 3 reason why I believe that now is the best time to start a business.
1. The Economy is in Recovery Mode
Some people may be tempted to ride out the recovery and wait until “just the right time” before launching a new business, but recent studies show that by doing so, they may miss out on some chances for long-term survival.
This was proven by a researcher at the University of Chicago’s Booth School of Business. He found that of the companies that opened from 2009 to 2011 (The Great Recession), 51 percent of them were still in business after 5 years—and that’s 3 percent more than businesses that startup during good times. And of the companies that started in 2011 when the Great Recession hit the hardest, 56.1 of them had a five-year survival rate.
The study further shows that in the time period from 2002 to 2003, which was right after the dot-com bust, the five year survival rate also reached 50 percent.
Waverly Deutsch, a professor at Booth, says that the downturns in the economy seem to leave a “gap in the market.” And that means, according to him, that a good time to start a business is right after a market downturn.
2. Small Business Optimism is at a 45-Year High
The small business optimism index is at record high levels, and many experts are attributing it to the new tax cuts. Because small business owners now have a lower tax burden, it’s freeing up cash flow, and that’s allowing them to spend more money on marketing and hiring new employees.
The National Federation of Independent Business says that small business profits hit the highest level of profits in the 45-year history of the Economic Trends Survey. In other words, small business owners are seeing incredibly high profits now, and all that optimism is coming from actual sales, not just hopes and wishes for a brighter future.
For example, the study shows that 57 percent of small business owners are either hiring new employees or are in the process of doing so. That’s why new job creation is at historically strong levels.
3. Your Life is Waiting for You
You’ll never achieve the freedom that comes from running your own business until you open it. Likewise, you won’t begin down the path towards financial freedom until you stop working for someone else and begin building your own dream.
In other words, to build the life you want to live, you must begin and according to the latest data, now is one of the best times to do that in recent history. But before you make the leap, be sure that you’ve done all your research and planning—otherwise your business may never have the chance to succeed.