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There is no perfect time to start a business. I know. Growing up in a family business, I always thought I would love to open my own business, but I was waiting for the perfect time. Then I got fired from my job in broadcasting and had to decide what to do. Was I ready to become an entrepreneur? Did I have enough experience? Where would the startup funding come from? Did I want to own one or was I just in love with the American dream of being an entrepreneur?
The hard truth is that most people don’t plan to start a business because they have unrealistic expectations and haven’t done the hard work to ensure its success. The statistics confirm it. According to the U.S. Bureau of Labor Statistics, “20% of new businesses fail during the first two years, 45% during the first five years, and 65% during the first ten years.”
I have been in business for more than 35 years, which puts me in the category of only 25% of companies that make it 15 years or more. Am I smart or lucky? Or a little of both? I believe small businesses could significantly improve their odds by starting the right business at the right time and taking the right steps.
Related: You Won’t Be a Successful Entrepreneur Until You Adopt These 3 Habits
The right deal
Ideally, there are two things to consider. First, the type of business. The right business for one person is very different from the right business for another. In my case, television experience was a great basis for starting a multimedia production company. I had worked for several television stations in various roles, so I understood both the production aspects, what compares to operations in other businesses, and the financial considerations.
When you start a business in an industry where you know you have an advantage, you see the opportunities and the pitfalls. You can become a recognized leader faster than someone just starting out. You may also have recognition or awards that give you instant credibility. In my case, I won more than thirty television awards, which proves that I was a seasoned professional.
A side note: I know people who have been very successful in starting businesses without a specific background in the product or service. These are, however, educated business people who can successfully run an operation and have found others with the skills and understanding of the industry. Being a franchisee is another way to get started because the franchise owner has put the products, systems and training in place to jump-start ownership.
The second thing to consider is the passion and commitment level of the entrepreneur. Even competent and trained people have to work hard during the first few years to lay the foundation. Entrepreneurs know this means missing family events, extended hours, and investing money back into the operation instead of putting it in their own pockets. If you have a passion for business, it’s easy to stick with it. If you don’t, resentment builds and the company suffers.
Related: Passion, Freedom, Impact: The 3 Ingredients of Business Success
The right moment
You may think that timing is about the age at which you start a business. It is not. Entrepreneurs start businesses at all ages. Over the years, we’ve seen many young people and their parents on Shark Tank trying to find an investor for their businesses. It could be argued that the business is actually the parents’ idea, but not always.
At the other end of the scale are the encore entrepreneurs. These are successful entrepreneurs who sold their businesses and couldn’t sit still or who left corporate America and started their own business late in life. Of course, many of those starting a business are millennials and Gen Zers. The right time is at any age.
What is more important is whether or not the product or service is market ready and in demand. Media production as an industry has been in constant demand since I started, but it was even more popular during and after the pandemic as people needed to communicate but didn’t want to travel or meet in person. Many side businesses have become increasingly popular and there is still room for new entities. But others have crowded fields. It’s important to look at your competition and see how your offering fits in. Is it different, better value or cheaper?
One last thing to consider: Sometimes you’re so far ahead of the market that you need to do more than just sell; it is necessary to educate and create demand. Think about it. Things like computers, meatless burgers, and even kitty litter have changed or created a whole new industry. The timing here is tricky. Get in too early and it takes enormous resources to get noticed. Too late and you won’t be able to recover.
Related: You can turn your side hustle into a business
The right steps
Benjamin Franklin said it best: “If you fail to plan, you plan to fail.” To be successful, you need to take the right planning steps. You have to do the tedious work of creating a business plan. This is the roadmap on how to start, manage and grow the business. There are many different templates and resources for creating a plan, whether you’re starting a traditional business or a lean startup. Choose one that meets your needs. You also need to find and surround yourself with a great team of advisors, including a business lawyer, financial professional, insurance and risk management team, and more.
Don’t rush these steps. They laid the foundation to beat the odds and grow a great business.
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