Starting a new business venture is always fraught with challenges and risks, even in the best of economic times. The process of performing a thorough evaluation of all things to do with strategy, planning, tactics; and the struggle to align the principles enthusiasm perfectly with the realities of the math, are critical for the success of any new start-up. Timing is one important factor but it is not everything when it comes to launching a new business, though deciding when to pull the trigger on a new venture is the one factor that often creates the most consternation and hesitation among new business entrants. The past half-decade has produced an increased level of uncertainty and caution for those who seek to bring their new idea, product or service to market. As we begin to inch forward towards an improved economy many “entrepreneurs in waiting” are asking: What is the climate and opportunities for new start-ups for 2015?
The economy is beginning to move forward with some predictable and deliberate pace after an extended period of complacency. The improving stock market and rising consumer confidence is leading many entrepreneurs, venture capitalists, and industry experts to predict 2015 as a favorable time to identifying new, untapped market opportunities and launch a new business. Current small business owners are the most optimistic they’ve been since early 2008, with several surveys indicating they also plan to expand and hire more workers in 2015. “Despite some recent hiccups in the stock market, the economy appears to be churning along at a positive pace, with GDP, the unemployment rate and access to capital all headed in the right direction,” says James Noe, an analyst with Sageworks, a financial information company. “As a result, now may be as good of a time as any to take the plunge into entrepreneurship.”
Acquiring start-up financing and attracting investor capital is essential to any new businesses viability. Last year was a very good year for venture capital investors who concluded more deals of higher value since 2001 and the coming year appears to be on pace with 2014 levels with little signs of abatement in investor enthusiasm. The strong numbers have analysts predicting a “strong level of investing” to continue in 2015, primarily in the technical sectors. As a general prediction private equity lenders are expected to grow lending levels in the coming year but bigger banks will continue to focus on larger sized businesses rather than startups, opening the door of opportunity for institutional lenders like; credit funds, insurance companies, family funds, and other yield-hungry, non-bank financial institutions. Low interest rates will continue to encourage the formation of new businesses in 2015. “Historically low interest rates and its impact on small business owners should not be overlooked,” says Gene Marks, founder of The Marks Group. “The U.S. Small Business Administration is zeroing out fees on loans of $150,000 or less through fiscal year 2015.”
Technology continues to drive down operational costs, provide even the smallest business with access to world markets and make expert knowledge easily and readily available to rookie entrepreneurs. “The internet of things” is on its way to becoming a $14 trillion industry providing previously unequaled opportunities for new marketers of previously non-existent products and services. But not all of the best ideas involve high-tech. According to Inc. Magazine some of the best industries for starting a business in 2015 include; fantasy sports services, relaxation beverages, Gamification services, food e-commerce, public-sector technology, physical fitness, agriculture software and even the newly created legal marijuana industry.
The truth is that there is no one “best time” to start a business, and while prudence and good judgment are always harbingers to making the best decisions, overt and unreasonable caution will only result in inaction. Now may be as good a time as ever to make it happen.
Image courtesy of Stuart Miles at FreeDigitalPhotos.net