Starting A Business – When Is The Right Time? (2/5)

There are two different ways of approaching the “when” question about opening your own business.

Is now the right time to open – meaning, is this the right time of year, the right economic climate, the right time in terms of changing ways of business?

And also, what hours are you going to keep. This is a very important aspect in the running of your business. If you don’t get it right – such a simple decision could end up costing you the business.

But firstly – look around you. Is now a good time to be starting a business? Retailers across the country are in trouble. They are finding the strength of the Australian dollar is inhibiting profits for imports and that consumer trends are to go online and buy imported goods directly.

There is also a trend for people to spend less and save more which could impact a business that relies on discretionary spending.

Of course, it’s important to look at the particular business and the trends affecting that business. A photo developing shop is probably not going to be an ongoing concern unless it is willing to adapt as the market changes and more is being able to be done online.

If you’re borrowing money – perhaps the economic climate is more important as your costs will include any interest rate rises and this will affect your bottom line and profits.

If you’re opening an ice-cream shop or gelataria perhaps winter isn’t the best time for this. Nor is it the right time to open a coat shop in summer.

Opening hours are another major concern for your business. If your location isn’t an early rising one – there’s probably no point opening at 9am. Maybe 10am or 11am would be more suitable and a later finishing time.

If you are a hairdressing or beauty business, late closing hours are becoming increasingly expected.

You should also try and fit in with other businesses in your area. If you are a shop which services commuters getting off the train you should try and make the most of the busiest travel times.

Similarly if your area has an influx of visitors on a Sunday you should keep open longer hours then.

If the hours you will need to open are very long – maybe you will need to hire more staff. Again you will need to take this into account in your expenses.

Again, it’s of vital importance to do your research before opening any business. Survey other local businesses. Hang out for a couple of weeks – at different times, and on different days. You shouldn’t consider opening unless you have a real feel for the area and how your business will fit into it.

Read part three: How to clearly state what your business does