Here’s how to know if the time is right for you.
- An improving economy could make 2022 a good time to start a business.
- You’ll need to make sure you’re up to the challenge and have a plan for pulling it off.
In the course of the COVID-19 pandemic, many small businesses got hammered. And some are still trying to stage a recovery.
But these days, the U.S. economy is stronger. If you’ve been contemplating the idea of starting your own business, 2022 may be a good year to get the ball rolling.
But is the time right for you to start your own business? Ask yourself these questions to find out.
1. What do my savings look like?
It can take time for a small business to become profitable. That means you could end up going many months without a paycheck while you get that venture off the ground.
That’s why it’s important to go in with a healthy sum of money in your savings account. If you’ve socked away enough cash to pay for six to 12 months of essential living expenses, then you may be in decent shape to move forward and absorb a massive pay cut for a period of time.
2. Do I have the money to kick-start this venture?
Some businesses cost more than others to get off the ground. If you’ll be operating your business from home and you don’t require much in the way of equipment or supplies, then startup costs may not be a huge consideration. But if you need to rent commercial space and invest in supplies and equipment, you’ll need to make sure you have the money for that — or the ability to borrow it.
To that end, you have options. You could borrow against your home equity, or you could try to take out a small business loan. But it’s important to know how your startup costs will be covered.
3. How will owning a business impact my work-life balance?
Owning a business is a big commitment — one that could have you putting in more hours, at least initially. You’ll need to make sure you’re okay with that potential hit to your work-life balance.
If you’re going through other changes, such as having a baby, now …….