There are many great mistakes people can make when it comes to start-ups: A lack of a clear business plan, poor money handling and inflexible approach being three. But another is the issue of timing.
In its list of the biggest errors start-ups can make, Entrepreneur Magazine included “launching at an inopportune time”. However, the detail of its explanation might come as a surprise.
Right now, one could easily imagine that an economy hit hard by the pandemic is far from the ideal environment to start a new business in. However, this is not what the Entrepreneur emphasises. It lists the economy alongside natural disasters as being in the “outside of control” category.
Instead, it notes, the real issues are about neither going too soon or too late in relation to your product.
Going too soon means you may not have considered whether it is a product or service people really want or is ready to be marketed.
Launching too late means you could be beaten to it by someone else who gets their product out there first and gains the advantage of being the first mover. Alternatively, your funds may run out because you waited too long to launch and you can’t generate income soon enough.
This is exactly the kind of issue that good startup coaching can help you with. Indeed, when it comes to advice on how to avoid making startup errors, Smallbusiness.co.uk includes the tip to never be afraid to ask for advice.
It is certainly true that the more you know, the better chance you have of success. Indeed, one important piece of knowledge is that starting a new business in an economic downturn can actually work very well. After all, Uber and AirBNB both began during the great recession of 2008-09.
For that reason, you shouldn’t necessarily wait for the economic recovery to gain strength before you launch. Instead, you need to assess whether you are ready to begin now, and get ahead of any potential rivals who are hesitating over the question of when to start.