When is the best time to start a business? The answer may very well be right now. With nearly 500,000 businesses started each month, the environment for starting a business has never been better.
Did you say to yourself last year that you were going to start a business, but never followed through on your commitment? There are many reasons why you may not want to wait until next year to finally start. In this article, we’ll outline the 9 reasons why right now is the best time to start a business.
Why do people wait to start their businesses?
If you are one of those people who have waited to start a business, you’re not alone. A staggering 24 million people are thinking about starting their own business but only about 6 million new businesses are started each year. Why do so many people hesitate? There are several reasons why people never take the crucial first steps.
One of the major reasons why people wait on starting a business is that they don’t know where to start. Most people have ideas but cannot formulate a plan of attack that will help them move forward. In our article How to Start a Business in All 50 States, we provided everything you need to start a business no matter what state you live in. Hopefully, this helps get you get past that barrier.
Another reason why many people hesitate is that they do not know the type of business to start. They know that they want to run a business but are unsure of what industry is the best fit for them. The truth is finding the right business is easier than most think. Here we have listed 100 different businesses that can be started by just about anyone.
Although you should consider the risks, time, and energy it will take to start a business before you launch, I do not recommend you layer excuses. There will always be another excuse to not do something. Don’t let those excuses keep you from being the entrepreneur you dream of being.
1. It’s Easier than Ever
Setting up a business has never been easier. New apps make being a pioneer so much easier. ZenPayroll calls this “Generation Entrepreneur,” because for us “there are better and cheaper ways to solve business problems through software.” At the end of the day, the business market is doing well.
Entrepreneurs enjoy a plethora of help from previous entrepreneurs, and can in turn provide an even more streamlined service for the next generation. Many of the newer business owners can succeed off the shoulders of previous ideas. For example, how many people’s businesses have thrived after Facebook allowed instant communication worldwide?
Some of the benefits of previous entrepreneurs allow free marketing, easier connections with angel investors, setting up email lists, having data of customer engagement, using digital storefronts and online distribution. Today, we don’t have to interact with customers face-to-face to leave an impression.
2. There are more options than ever
No one needs to develop the next Facebook or Amazon to make six figures. Plenty of non-publicized and low skill, but highly profitable business ideas are just waiting to be utilized. Even if you are working a full time job, doing what you truly love can be a valuable source of supplementary income.
In this business climate, it is possible to leverage your current skills to turn them into a profitable business. You can also acquire new skills and utilize them to start your business. “Chat-bots,” which are increasing in demand due to globalization, and have become a major priority for growing companies. You can find tutorials online on how to make them with little experience.
The influence of the internet encourages companies to look for professional social media managers to garner a fan base for their product and to add personality behind their brand name. In two seconds, you can find programs which certify in social media training for little to no money. It’s about taking advantage of your talents and taking the time to develop new skills.
3. There is more support than ever
Today, entrepreneurs face a growing network of support, even from day one. There are several professional clubs, podcasts, and a plethora of other information that help you set up your business. They link you up with some of the finest business people in the field, with years of entrepreneurial maturity.
Entrepreneurs need to train themselves mentally to always make the best of opportunities that come their way. Previously, that would mean that a person would have to enroll in classes or acquire a business degree in order to gain knowledge and skills. These days, there are online courses where a person can learn new technical skills as well as learn how to change their mindsets.
There are also more books now on the topic of entrepreneurship than ever before. “The 4-Hour Workweek” is a revolutionary book by Timothy Ferriss, redefining the structure of the modern work day. It’s one of many titles that offer assistance for “Generation E” in developing profitable habits. There are also books that will help with marketing, sales, ecommerce, and even running a business part-time.
On top of that, services such as YouTube allow people who have experience to offer free videos with tons of direction for no cost to the viewer. They generate their profit from views, which becomes another resource for them. This mentality helps entrepreneurship feel more like a family.
4. Less Risky than before
The definition of entrepreneur includes “a person who assumes greater than normal risk in order to start a business.” Historically, that has been true. However, the definition of entrepreneur has become much more fluid in recent years.
The rise of freelancing and part-time entrepreneurship provides the opportunity to start and operate a business with little startup capital and less risk than in the past. Nearly 25% of the people in the U.S. have a side business they operate while maintaining a full-time job.
There is such an open market for businesses right now that you can diversify your income. Learn to make use of your time, and you could succeed with only a few bruises if things do turn out well.
If your business is particularly profitable, you can save money, make even smarter decisions, and make use of more talents that you wish to pursue. The journey is to keep getting better. Cheaper, simpler opportunities relieve bothersome burdens for new entrepreneurs. And if things do go haywire, you can buy insurance on everything to cover any massive would-be losses.
5. Job Salaries Are Not Increasing Fast Enough
A strong economy should, in theory, produce higher wages for all workers. That has not necessarily been the case in the U.S. over the past 10 years. Job salaries among the lowest paid workers increased slightly in 2019. Pay for lower skilled workers such as retail and food services have increased by 4.5% per year. However, in middle-wage industries, wage growth has stagnated at 3 percent, while wage growth in high-wage industries has actually been declining and was just 2.4 percent as of November 2019. And, according to the Economic Policy Institute, nominal wage growth has been far below target in the recovery.
All though that shows some positive movement when it comes to wages for lower skilled workers, the increase still makes it difficult for those workers to reach the middle-class and still puts a squeeze on the current middle-class. If you are concerned about your economic future, relying only on the possibility of a salary increase may not be your best bet.
If you are not moving up the ladder, you should anticipate a slower increase in your wages, as many Americans still struggle with having enough money for paying monthly expenses, saving, and investing. If we account for inflation over the years, the average wage of the American people has barely budged over the past six decades.
Starting a business allows for the opportunity to supplement your income, as well as the possibility to replace it. There is no salary cap when you own a business, and there are always opportunities to increase your earnings. As a business owner, you can control your own salary, and will also have the option to take dividends. All of these options can provide a level of financial growth for yourself that may not be possible as an employee.
6. The Demand for Services is increasing
The demand for freelance or specialized services are increasing at an amazing rate. Whether you would like to freelance or build a company, the market demand for small business products and services is increasing.
In fact, freelance workforce statistics state that 71% of freelancers had more work available this year than in 2018. Additionally, 42% of small businesses employ freelancers.
On Entrepreneurship Facts’ top high freelancer skills in demand were listed such skills as:
• Virtual assistant
• General spreadsheets knowledge
• Accounting & bookkeeping
• Web development
• Web design
• Social media marketing
• Graphic design
• Writing and content marketing
These are just a few online services that can be turned into profitable businesses. But there are also many offline businesses that can be started for less and are still very much in demand. Whether it is mobile detailing, dog walking, or mobile car repair, there is a demand for more personalized services than ever before.
7. Your current job may one day not exist
Many people do not start a business because they have a fear of not having job security. But what many do not realize is that true job security is a thing of the past. Just about any job that exists today can be gone tomorrow due to downsizing, termination, outsourcing, or automation.
In fact, a report by the Brookings Institution, titled, “Automation and Artificial Intelligence: How Machines Affect People and Places” states that approximately 25% of all jobs are at “high risk” of being eliminated due to automation. Some of the most vulnerable jobs are those in office administration, production, transportation, and food preparation. Such jobs are deemed to face “high risk,” with over 70 percent of their tasks potentially automatable.
But if you think that your white collar job is safe, think again. Jobs in HR, finance, health support, and even sales are at risk. For example, AI bots now search resumes looking for keywords that will better help match an applicant with the right employer. No need to have an HR team spend hours sorting through hundreds of resumes.
Starting your own business is essentially creating a job for yourself. This is a job that is secured as long as you are providing something valuable to the marketplace. Starting a business, even a part-time business, gives you options. It can provide extra income or it can be the thing that replaces your job.
8. You can design your life
Being an entrepreneur these days is an opportunity to design your own life. You get to benefit tremendously from less effort, and have energy for other projects during the day. You feel that your life truly becomes your own.
New job opportunities are so lucrative and mobile, anyone can manage a business from anywhere in the world. Innovators can combine the hobbies they already enjoy: traveling blogs, cooking shows, yoga sessions, and other lifestyle habits.
We live in a time where starting your own business is too easy to ignore. Think of the story of Ty Warner: the man who is now worth $2.6 billion thanks in part to his business of selling exclusive stuffed animals to fast food restaurants. How about the million dollar homepage, which allows one dollar per pixel for advertising?
These people have freed up their time by investing in the habits that were easy for them, and now they benefit from a lenient schedule, doing what they love or what comes easy for them. Moreover, their general health increases, they feel in control of life, and report feeling more satisfied with their progression.
9. Time is valuable, it is flying by
One of the things you cannot afford to waste is time. When it comes to succeeding in business, time is your most valuable resource. That is one of the reasons why this year is the year to take your entrepreneurship dreams seriously.
If you’re between the age of 20-39
If you are in your 20s or 30s, there are several reasons why now is the best time to start even a side business. First, you create the potential for compounded returns as your business grows. The longer you are in business, the more earning potential you create.
Also, when you start a business at a younger age, you can afford to be a little more risky than, say, someone in their 60s. Because younger people have many more working years ahead of them, they can afford a few missteps.
Finally, starting young also allows you to take advantage of the ever changing landscape of business. Younger people tend to be more adaptable when it comes to new technology. Your ability to adapt and pivot will benefit you as an entrepreneur.
If you’re 40+
But what if you are no longer in your 20s or 30s? Is it too late to start business this year? Surprisingly, no. According to The Harvard Business Review, the average age of a successful startup founder Is 45. In 2019, 60% of the people who started a business were over the age of 40. Why are older people more successful when starting a business?
One of the reasons may be experience. Having collected skills in marketing, leadership, and sales over the year, those above the age of 40 may be better equipped to not make mistakes that are common with younger business owners.
Financial stability may be another reason why older entrepreneurs succeed. The average startup can take 2-3 years to reach profitability. Older entrepreneurs may be more financially stable, and thus can afford to take less of a salary while their firm grows. These are just a few reasons, but there are many other possible reasons why older founders have found success.
Whether you are older or younger, time catches up to us all. That is why if you have been thinking about starting a business, you should begin the research, development, and launching process immediately. Even if you do not launch right away, the important part is to start!
If you have been thinking about starting a business for years, the 2020’s may be the best time to do it. With support, opportunity, and demand at an all-time high, you may be closer to success than you think.