Some enthusiasts claim that there is no better time than now to own and run a business. It may be more prudent, however, for potential entrepreneurs to write down, research, and address exactly what it is they wish to do before they begin – as well as examine what starting a business will involve and how the process will be tackled. Without this knowledge (which can take six months or longer to accumulate), the entrepreneur will probably not be ready for business ownership.
Just as important, critical outside obligations (e.g.: the onset of medical treatment, college tuition payments, financial problems, unresolved crisis, personal dilemmas, and so on…) should be taken care of beforehand to avoid distractions.
The understanding and support of partners, spouses, or children is equally as crucial because many experienced practitioners insist that entrepreneurs do not have much time to spend with their loved ones during the first few years of a new business venture.
What about the economy? Is it prudent to wait for the economy to improve before starting a business? Disney, Hewlett-Packard, and Microsoft all started during economic downturns – as did half of the 30 companies that comprise the Dow Jones Industrial Average. Indeed, some analysts claim that a recession is a great time to open a business because wages are down, rents are cheaper, competition is scarce, and goods and services can be found at a discount.
That being said, there is no definitive proof to suggest that recessions make starting a business easier. The availability of resources, personal abilities, and the current circumstances of the entrepreneur should all play major roles in determining the best time to start-up a business.
Where Is the Best Place to Start A Business?
The most obvious answer to this question is where there are plenty of customers. But one must also take into account the specifics of the area or region where prospective customers are located.
For example, if you’re planning on setting up a business in a part of the world that you’re only partly familiar with (perhaps because you fell in love with it while on vacation), do plenty of homework first.
According to the World Bank’s International Finance Corporation (IFC), entrepreneurs planning on starting a business in a foreign country or unfamiliar area should first ensure that the following situations exist:
1. There should be a low number of rules, regulations, paperwork, and licenses so the business and its activities can be made legitimate in a timely manner.
2. The business owner should be able to hire and fire employees with relative ease.
3. The business owner should have the capacity to draw up and enforce a legal contract.
4. The business owner should be able to obtain credit or borrow money.
5. A low number of steps and procedures should exist so that the business can either be closed down – or bankruptcy can be declared – with relative ease.
Advice from the Pros
The answers to why, when, and where a business should be started form the foundation of successful entrepreneurship. ‘If you’re interested in starting a business the answers to a lot of your questions will arise after you’ve searched and explored both yourself and your reasons for doing so,’ says restaurant owner Bernard Marche (founder of the Chick-a-Chick Cafe in Warsaw, Poland). ‘To avoid surprises and the unnecessary expenses behind them, examine each and every environmental, economic, and financial situation that surrounds you before taking action.’ Additional start-up advice from experienced entrepreneurs includes:
- Avoid rushing into uncharted territory. Don’t leap before looking.
- Know the unexpected places where an entrepreneurial lifestyle may lead. For example, if you’re a jewelry worker who loves the craft, but you’re sick and tired of laboring for someone else and want to spend more time working as a designer, bear in mind that running your own business may involve more administrative than creative work.
- Yes, it is possible to bake cookies, or build a piece of furniture, or design a website for a friend and be paid for it. But if you want to turn these pastimes into a business you must first find out if producing them on a regular basis can secure a living. Is there an ongoing market for these products/services in your area? If not, can you afford to attract distant customers and ship your product to them? Will the money you generate be enough to pay a mortgage and bills and support your family?
- Before taking the entrepreneurial plunge, prepare for the obstacles that stand in your way. Novel situations in business are rare so it is possible to determine much of what lies ahead.
- Don’t leave a paying job to start your own enterprise until you have first sorted out what you want to do, the direction you want to go, and the best time to start. Keep your current job while examining the self-employment options available. That way you won’t be deprived of income before you begin.
- If you have a good idea and have done your research, move quickly and prudently. Procrastination is a killer in the business world.
- Whether starting a business or launching a new product, remember that the idea is to score goals, not just kick the ball. 100% commitment is mandatory. The harder you work, the luckier you get. As famed Hollywood film producer Mike Todd once said, the meek may inherit the earth, but not in our lifetime.
- Lastly, consider the often told (probably apocryphal) story about two explorers that were sent by a shoe company to a primitive part of the world to determine the viability of the market. ‘Complete disaster!’ wired the first explorer, ‘No one here wears shoes.’ The telegram from the second explorer arrived a few hours later. ‘Fantastic opportunity!’ it read, ‘No one here wears shoes!’