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Is This a Good Time to Open a Small Business?

John McMalcolm

August 13, 2013

Timing can make a big difference in the success of a business.

If you are planning to start a small business, this is an opportune time to do so. Now that the presidential election is over and the economy is recovering steadily, you can take advantage of the favorable economic conditions to get your new business started on the right foot.

Below are some reasons why you should start a new business in 2013:

Increase in Consumer Spending

As the effects of the 2008 recession are beginning to diminish, consumer confidence is on the rise.

The U.S. Department of Commerce reported that consumer spending increased by 0.2 percent in March, 2013, making small business owners more optimistic about the future.

If you have appealing products and an effective marketing plan, you should be able to gain more customers as the economy continues to improve.

Availability of Entrepreneurial Support Systems

There are presently many support systems available for people who wish to start a new business, including startup accelerators, crowdfunding, freelance marketplaces and others.

These systems can provide all the information and assistance you need to develop and maintain your business plan, and most of them can be conveniently accessed over the Internet.

Optimal Conditions for Hiring Employees

As job growth remains slow in 2013, there will be a large a number of people seeking employment. This will work to your advantage when you are hiring employees for your company.

You will have a greater number of candidates to choose from, and you can hire high quality candidates without paying overly high wages.

Unfavorable Conditions for Starting a Business in 2013

While there are many factors that make 2013 a good time to start a business, there are also certain unfavorable conditions that you should be aware of.

As small business owners become more optimistic about the economy, they will take more aggressive measures to gain customers. This will raise the level of competition among small businesses.

As such, it can be difficult for you to make your business stand out if you are getting into a competitive niche. Additionally, it is becoming more and more difficult for people to get loans for starting small businesses.

Although the number of Small Business Administration (SBA) loans given has increased over the past two years, only a small percentage of small business owners managed to get these loans.

Factors You Should Consider Before Starting a Small Business

Before you open a small business, you need to know whether or not you have the necessary experience to handle the kind of business you are venturing into.

You should be ready if you have at least two years' experience in the field. Also, it is important that you do some research on the market you are planning to break into.

If the market is too competitive or saturated, it may be a good idea to enter a different market. Other factors you need to look into include the availability of loans and the amount of time you need to invest.

Whether you decide to open a small business now or later, it is essential that you have all the necessary resources and an effective business plan.

Make sure you do enough research before you proceed with your business venture.

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