When is the best time to start a business?

Could you imagine starting a new business during a global pandemic?

Many people did and many of them have found great success with their new ventures.  Proof that you can start a new business even during troubling and financially uncertain times.  Now we readily admit that starting a business during a pandemic has quite a few limitations.  During the peak of lockdown, starting a restaurant for example when nobody could go out might not have been very smart but starting a business at the time selling customised face masks…..very good timing. However now that restrictions on mask wearing etc have all but gone, how sustainable is that business now?

While starting a business during a pandemic or a recession may present obstacles, there is almost no such thing as the perfect time to start a business. There will always be obstacles.

Outside of pandemic timespan, if you think about a modern business and what it needs, what are the obstacles that can hold you back.  If there is a recession and people have less money to spend, does that mean that you will have absolutely no customers? Probably not.  Is your target market directly affected by the recession? Depends on what you are selling.

There are always opportunities within the market.  Many restaurants benefited so much from take away and collection orders during the pandemic that they have continued to operate it, thus opening a new financial revenue stream.

Available Talent

The pandemic opened up huge numbers of career change opportunities for people as many businesses had to let go of staff in order to survive.  That meant that there was a lot of highly skilled and talented individuals on the market looking for work.  Many of them created new businesses themselves.  Many of them brought their talent and skill into a new sector. Likewise, a recession can open up a new talent pool so if you think that now is a bad time to start a business, it may infact be the right time to get better quality employees on your payroll.

Potential for better rates

During tougher times, there is more scope for ‘haggling’ and negotiation on prices.  Looking for office space, you might find better commercial property lease deals.  The same goes for suppliers.  If other businesses are shutting, the knock on effect to their suppliers can present interesting opportunities for discounted deals.  If you don’t ask, you don’t get.

Look the the future

Too many new start up businesses look to todays market as a gauge on whether they should start a new business but really they should be looking to the future.  Don’t let the current state of the economy stop you. You can start a business incredibly cheaply these days.  All you need is a good idea, a laptop and the internet.  You don’t need a degree to be an entrepreneur and if the market is struggling, that means that there are less competitors out there to deal with. By building your business now, you will be in the best position in the future to capitalise on the market as it recovers.

If you have been thinking of starting your own business and are worried about when the right time to do it is, then don’t panic because there is not really such a thing as a good time.  The economy may be slow, inflation may be high but with careful planning, you can thrive.

How we can help

We are Momentum Bookkeeping and our goal is to make running your business easier. Whether it’s getting paid by your customers on time, completing your VAT returns or processing payroll; the demands on businesses can seem endless.

You are, as a business required by law to keep a record of accurate accounts for the last six years. Bookkeeping makes this significantly easier.

Up to date and detailed bookkeeping provides you with the latest information on your business finances so that you can make important financial decisions to help your business grow. Professional bookkeepers can provide you with these valuable services while helping to make your bookkeeping more efficient – Making sure your accounting documents are error free, well sorted and up to date.

By having the latest, most correct bookkeeping figures easily at hand, you can plan for your business growth and really build momentum in your company. You can produce cash flow forecast and make clearly defined plans for your business growth. Reports like this can be vital when your business is looking to expand.

Here are 5 very good reasons why bookkeeping is so important.

1. Tax preparation
2. Business analysis
3. Financial management
4. Cash flow management
5. HMRC Compliance

If you are serious about your business then a bookkeeper is a vital addition to the day to day running of your company. Running a business is not easy. But at Momentum Bookkeeping, our goal is to make it easier for you.

Let us handle your bookkeeping needs so that you can focus on running your business and gain some real momentum.

Disclaimer. Every business is unique and every business is different so the above is simply suggestions as to the potential benefits of starting a new business and in no way is us saying that you should 100% go out on your own and start a business.  Make sure that you have done your research and there there is a market for your product or service first.