Is the Time Right to Start a New Business?


Many people have asked if the time is right to start a new business. No better time exists than at present to launch a business. The reason is clear. Entrepreneurs attract capital to new ideas. Investments in new ventures stimulate economic conditions, create jobs, and fill market gaps to improve consumerism. Relying on existing companies does little to address emerging consumer needs. Existing companies are not investing because they want to preserve what they have and not run out of cash.

When market gaps exist consumer prices go up because of a lack of competition. Established companies simply raise prices to generate more cash to survive. Any unused cash sits idle earning a minimal return. Do these conditions sound familiar?

At some point a business started under present conditions will need additional capital. Starting now will put a business in a more favorable position when it needs cash later on, and when investors start to use idle cash to restore their investments. Starting a business now allows a founder to gauge the ability to generate cash flows. Investors want to invest in companies with a clear picture of potential cash flows. Why would an entrepreneur not want to gain a first mover status to fill a gap?

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