When Is The Best Time To Start A Business?
If you are reading this you probably want to build your own startup. You might even have a rough idea of the product ready, but you’re unsure if this is the best time to start your business.
Timing can make or break your business. No, we are not being dramatic. Take Six Degrees as an example. What is Six Degrees you ask? Exactly.
SixDegrees.com was a social media site launched back in 1997. Having acquired 3.5 million users, it shut shop within 4 years. One of the reasons was poor timing, slow adoption to technology, lack of infrastructure with the masses meant that the site was too ahead of its time.
Now there are several factors that come into play when deciding the ‘best time to startup’, some like that in the case of Six Degrees are market dependent, and some are dependent on you.
To bring a more objective approach to answer this question, we bring to you a 3-point guide that can help you decide the best time to start your business.
Why Are You Building Your Startup?
Your primary objectives and plans are as important as market conditions in determining the ideal time for you to start your business.
- Are you just fascinated to be a “founder” or do you want to solve a real problem in the market, because it's not glitz and glamour, in fact it's the right opposite
- Do you 100% believe in the potential of your idea?
- Are you motivated to follow through with your idea till the end?
And if the answer to all the above questions is yes, then you’re on the right path.
Building a venture requires unwavering vision. If you are unsure about your idea then the chances are you’ll quickly lose interest in it and stop putting in the effort needed for its success. It is also bound to demotivate people associated with your venture - your co-founders , investors, potential consumers, and your team.
As long as you are clear on your ‘why’, the what and the how will be the next questions to tackle.
Is Your Product Truly Solving A Problem In The Market?
If you have zeroed down on an unsolved problem in the market, the odds of your product succeeding increase significantly. Now, how does one ascertain this:
- Firstly, identify the customer experiencing the problem, understand their pain points and the problem that you’re trying to solve. The better you understand the audience profile the better you can segregate the entities your business will impact. This can be achieved through an idea validation exercise.
- Then start understanding the required solution to solve the above problem. This will help you build a product that the market needs. You’ll also need to be cognizant of the fact the product must have the potential to grow over time.
- Next, you can build a MVP (minimum viable product) and let the potential consumers review your product, to help you identify the weak points and refine it further before the real launch in the market.
This exercise also helps you to get a clear picture of how your product is relevant and differentiated from the existing solutions.
Based on the results of the above-mentioned points, you can get a better idea about the feasibility and the ideal customer profile for your product. Hence, helping you get a clear idea of how and when to launch your startup.
Do You Have The Resources To Take The Risk?
As a founder, you have multiple roles to play: leader, salesperson, accountant, etc., but you can’t launch a business on your own. There are several different aspects that you need to take into consideration before you decide to startup.
- For most businesses, capital is the priority. Getting funding from outside or bootstrapping is completely up to the founder, but the returns on this capital are crucial. You need to have a fair idea of expenditure for the first several years in proportion to the revenue projection of the idea. Having a safety net helps, so think about your safety net before taking the plunge.
- Next, most people require a team. See if you have recruited the people that will help you turn your vision into reality. A good team is the foundation for a good startup, take your time to build it.
- Last but certainly the most crucial factor, is your time. Determining how much of your time and energy you’re willing to give to this idea helps you plan the launch of your startup smoothly. Remember, it is the exception not the norm for part time founders to be successful.
If you are prepared to launch a business, you must have the time to dedicate to it, the drive to fight through challenges, sufficient funds, and a network of people who will support you throughout.
Deciding the right time to start a business can be a daunting task. There is no key that fits all locks. The ideal time to launch your startup depends as much on your preparation and plan as it does on market conditions.
We at Favcy Venture Builders go a step further to simplify the process for you by validating your idea, building a sound plan for your business model, and assessing the growth potential of the idea. If you have answered the first point ‘why’, we can help you figure out the next two points at Favcy.