Image courtesy of Thomas Angermann
Image courtesy of Thomas Angermann

With the world economy struggling in specific places and uncertainty in Europe as well as China, you may wonder whether it is a good time to start a business. It is not surprising that you may worry about this, every new business owner will worry about this whenever they start a new business and there is usually not the perfect time to start a business anyway.

However, you should be able to give some thought to your specific business and the current economy in order to find out whether it would be a good idea to start your business right now. Consider who your target market is to start with. Think about whether they will still be demanding the goods or services that you are offering and what price they will be able to afford to pay for them. They may still be okay or they may be affected by the economic situation and be cutting back. It may very much depend on whether what you are providing is considered to be a luxury or a necessity.

It is wise to think about the future as well. If there are changes, will it make a difference? It is likely that a necessity will not change with regards to the demand for it, however the competition may lower their prices in order to encourage customers and you will need to consider whether this is something that you will be able to afford to do as well.

At any time it is wise to look at your competition and see whether there is a gap in the market for your business. There could be a smaller market if your potential customers do not have a lot of money and this means that you may not find space to compete. Look hard and see how you can stand out and perhaps consider how you can set up a marketing campaign that is specific to the current economic situation and reflects current consumption habits.

If you need to borrow money to start the business then you need to think hard. Interest rates will go up in the future and this means that repayments on any borrowing will go up. Consider how much money you will have to make in order to afford increased loan repayments and how much other costs may rise as well. Consider how many more units you will need to sell in order to cover these costs and whether you feel that this is possible.

It can be hard to predict the future, but this is really what you will need to try to do to figure out whether it is a good time to start a business. You will need to think about whether you think the economy will improve or not and what effect this could have on your business. Consider different scenarios as this could not happen as you predict and think about how you could adapt and change in these situations and then you will know better whether you will be able to cope in different eventualities.