Should You Start a Business in 2024?

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Is the time right for you to start a business this year? Here’s how to know. 

Starting a small business has the potential to be an extremely rewarding experience. And if it’s a move you’ve been considering, you may be looking to finally make it happen in 2024. But before you finalize that decision, run through these essential questions.

1. Have I really thought through my business idea?

No matter the nature of your business, it’s important to think about every aspect of what it will look like. How will your product or service stand out from the competition? How will you sell and market your product or service? And how much help will you need?

You might have a truly innovative idea you’re eager to bring to life. But think through the logistics and details before deciding you’re ready to quit your day job. If there’s an aspect of starting your business you haven’t quite figured out, it may be better to wait and keep earning a paycheck while you get things sorted.

2. Does my business need funding, and do I know where to get it?

It can take money — and a fair amount, at that — to get a business off the ground. If you know you’ll need funding to start your business, now’s the time to figure out where it will come from.

Maybe you’ll apply for a personal loan to finance your start-up costs. If so, check your credit score first to make sure it’s in good shape. The higher your score, the more likely you are to get approved for a loan, and at a favorable interest rate.

3. Do I have enough savings to cover a couple of years’ worth of bills?

New businesses take an average of two to three years to become profitable, says FreshBooks. It’s not unreasonable to save enough to cover at least 24 months of basic expenses before starting a business.

Now, if you have a spouse and they work as well, you may be able to get away with a lot less savings. But either way, operate under the assumption that it will take quite a while to start making money from your venture. If things happen sooner, you’ll be pleasantly surprised and have that much more money in the bank to fall back on.

4. Am I expecting major life changes this year?

Running a business requires a commitment. And you may find that you’re putting in a lot of time in your first year to get that business set up and running smoothly. So if you’re expecting a major shake-up in your personal life this year, it may not be the best time to take on the workload and responsibility of a business you own.

Let’s say you’re currently child free but your spouse is expecting in June. You might think having a baby shouldn’t stop you from starting a business. But even if you have a child care plan in place that allows you to work full-time, you’d be surprised at how months of sleepless nights render you ineffective on the job. In a situation like this, holding off a year to start a business could make sense.

You may be really eager to become a business owner sooner rather than later. But run through these essential questions to make sure that starting a business in 2024 is the right call.

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