Traditionally, the first year for any new small business is often the most challenging: Misunderstood demographics, insufficient capital, underestimated demand all add up to account for the reasons new businesses fail. Forbes, one of the most trusted global resources for business and investment leaders, pinpoints one key element budding entrepreneurs tend to overlook in developing and launching their business plans-timing. More so than vision, creativity, hard work, and determination, they say, "The timing of presenting a new entrepreneurial venture to the open market is critical to its success". Along these lines, considering regional market trends and your own degree of personal and business preparedness is key.
Research the Local Climate:
Do your homework! Study the local business trends as well as statistical information for your industry to determine if the desire and need for your goods or services can potentially support your budding business. Indeed, it is possible to misperceive demand, thinking an idea can satisfy a consumer need. SurePayroll, a service dedicated to small businesses, offers one such example: a large number of "dotcoms," that were once expected to revolutionize American shopping habits, and even wipe out brick-and-mortar businesses, failed because of gross misperceived needs in their respective arenas. So, having a grassroots handle on your target market demand is imperative. Additionally, you'll want to determine whether or not the regional business climate can yield a viable and stable customer base to support your startup. Aside from a consumer base, consider too the competition in your intended marketplace. Is it too saturated, or do you stand to improve upon an existing presence? Certainly, understanding your demographic, their needs, your competition, and how these variables work with current market conditions will help you time your launch.
Personal Readiness:
In a recent study of several hundreds of startups, Idealabs identified "timing" as, "The prime variable between success and failure in 42% of cases." That's noteworthy! Being prepared for the marketplace is absolutely one concrete necessity. However, Inc. (a business resource magazine) takes a more intuitive approach to the notion of timing your startup. They say, "It is also a matter of being introspective", suggesting that you're "ready" when you no longer need to seek outside advice. In other words, your own passion, desires, and vision have at this point led you to acquire the necessary knowledge and experience to be an expert of sorts, ready to handle most conditions. Entrepreneur magazine takes a more practical standpoint, suggesting, "You'll know the timing is right when people (beyond family and friends) are willing to pay for your product or service." Forbes suggests considering your familial readiness. Do you have the resource of time to dedicate to getting your new business of the ground and running smoothly? And is your family and close support network in the position to be supportive of the demands on your time, and to also pitch in where appropriate?
Operational Readiness:
Having a good business plan to lay the foundation for your new business is essential. Having an operational plan is also vital to the success of your endeavors. Take the time to create and enact the procedures that will serve as the day-to-day inner workings of your business to help ensure forward momentum. Do you have all the funding in place to secure and maintain your fundamental needs: the purchase, lease, or rent of store space; the acquisition of any operational equipment and supply materials; staffing and payroll, etc.? Have you done the necessary legwork to ensure you are compliant with local business codes necessary for commercial enterprise? And have you applied for and been granted any pertinent permits, licensing, and insurance? Needless to say, devising an operational plan and putting it in motion requires due diligence and of course your most precious investment, time!
Bottom Line: Making a dream materialize and a startup business successful can be one of the most rewarding personal accomplishments. With so much to risk-capital, time, and passion-the endeavor certainly warrants thorough preparedness and a fine-tuned understanding of the intended marketplace. Whether becoming your own boss is all new to you, or you are a tried-and-true entrepreneur, opening a new business is as much about timing as it is about offering that special product or service. And having a firm grasp of the factors that impact your industry and an acute awareness of your personal strengths and shortcomings will help you launch at a time that optimizes your prosperity. Timing is everything!
