Timing is everything when planning to launch your small business startup. I’ve seen a number of people dive head first into starting a new business and fall flat on their face because they weren’t prepared. Starting a new business isn’t like starting a new job. It takes a significant amount of planning and preparation.
If proper planning and preparation isn’t done, you will likely increase your chances of failing within the first five years or less. Part of planning and preparation is knowing when it’s the right time to launch your small business startup. Here are a few things you should plan to have or do before starting a new business —
- You Have Cushion – It’s wise to have a significant amount of money saved before you launch your small business startup. It’s a proven fact that the majority of new businesses are funded by the owner’s personal savings. Therefore you don’t have any personal savings, you may find it difficult to launch your small business startup successfully.
- Your Personal Credit Has Been Established – The next funding option for most small business startup owners is debt financing. To qualify for debt financing, you will need to have a good personal credit history as a startup business owner. If your credit is not established or not in good standing, building (or rebuilding) it before you launch your small business startup will give you an advantage.
- You’ve Mastered the Art of Budgeting – Budgeting and managing your money wisely is crucial to your financial success in life and business. Before launching your business, you should create a budget and stick to it. Try that for at least one year before launching your small business startup. It will help you become disciplined at managing your business and personal finances and paying your expenses in a timely manner.