Question: What is the best way to pick the timing for launching a business?
Answer By Glenn Okun (2008) on Forbes.com: Timing the launch of a start-up requires consideration of a number of factors, including general economic conditions. The entrepreneur should assess the target market’s position in its business cycle, the state of the resource markets and the venture’s window of opportunity.
It is essential to understand the industry’s business cycle as well as the economic cycle in order to assess the prospective customers’ financial health and the potential demand for your offering. The current economic landscape provides the broad context in which commerce occurs. Individual industry performance does not necessarily correlate perfectly with overall conditions.
For example, bill collectors and payday lenders tend to outperform during recessions. A product’s benefits may resonate more strongly with customers during tough times, especially if cost savings and efficiency are significant elements of the value proposition. Firms with fuel-efficiency technologies are being deluged with inquiries today.
Start-ups typically require both financial and human resources. Economic difficulties may enhance the availability of some resources. Casualties of a recession may swell the ranks of the talent pool that is open to joining your venture. Investors in start-ups have a long-term orientation that exceeds the current business climate. Capital flows are not only affected by the economy but also by the expected performance of an industry.
Lastly, entrepreneurs must consider competitive conditions in making the timing decision. Market opportunities seldom are static. Competitors will likely identify the prospective customers’ unmet needs and act. One must try to estimate the duration of time over which the start-up can successfully enter the market and seize the opportunity.
The complexities of the entrepreneurial venture dictate that the founder conduct the aforementioned multifaceted analysis in order to select the timing of the launch.
Remember, always check the right time and opportunity to launch and start your great business ideas. This will help you to capitalize the opportunity faster.