Why You Shouldn’t Open a Business for the New Year

Many entrepreneurs have decided to open a business for the New Year. It’s certainly a big undertaking, but now is as good a time as any to become your own boss and change that vision into a reality. The New Year is the right time to start fresh. You can likely grab great employees who want a change and nab those customers looking to put their old ways aside. People are on the lookout for new, which is perfect for a new business.

However, as many entrepreneurs begin creating the business of their dreams, they notice it is much harder than originally anticipated. For this reason, it can sometimes take much longer to build a solid foundation for a business than originally anticipated. If this describes the current state of your future business, it is important that you don’t rust things—even for the New Year.

Finding the right pace at which to grow is extremely important. If you try to open your business too quickly, you could find yourself with more problems than had you waited:

5 Reasons You Shouldn’t Open for Business Too Fast

  1. Exhaustion – Both you and your employees will have too much to manage if you open before you’re ready. Everyone will have to take care of the foundational issues and customer issues all at the same time. This is too much to handle, and therefore your entire company will find themselves exhausted (which could lead to failure in the end).
  2. Careless Hiring – Your company will have to rush to hire employees if you’re trying to open for the New Year and aren’t prepared. Hiring employees should be one of the most important things you do for your business, so it’s important to spend a lot of time interviewing and conducting background checks.
  3. Office Space – Every business owner needs time to let a company develop before jumping into major business purchases like office space or supplies. If you open for business too early, you are likely to purchase way more than you can handle. This may force you to take out small business loans; only to realize you won’t be able to pay them back!
  4. Quality – Opening too quickly means you’ll be sacrificing quality. Things that get done in a rush are almost never as complete or correct as things done on time. This could potentially be detrimental to your business as a whole.
  5. Opportunity – Believe it or not, the moments before a business opens are extremely important. This is the time when you talk with investors and create business relationships. If you open too fast and then your business doesn’t appear to be working, you will have a much harder time making these connections.

One of the hardest things for entrepreneurs to gauge is when to open the business. This is different with every business, but the message is generally the same—don’t open until everything is in place. Make sure you spent a lot of time hiring, have quality investors, and explored all the opportunities possible; even if this means you have to wait until February or March of the New Year.

This post was guest blogged by Amanda DiSilvestro. Photo Credit: blog.augustmack.com


20 thoughts on “Why You Shouldn’t Open a Business for the New Year”

  1. i think this rule didnt apply for online marketing John…. we can open 24 365 all day long 🙂 love it

  2. Cool post, John. Although I’d argue that the idea behind it is to not open a business if you are unprepared and not just on New Years. Either way, love your work. Keep it up!

    1. A_DiSilvestro says:

      You’re definitely right–it’s more about don’t open a business if you are not ready. However, I think many people desperately want to be ready by the time the New Year hits. I think it’s important to remember that opening for the New Year isn’t totally necessary, so don’t rush it. Thanks for reading!

  3. jfryeski says:

    Awesome article, but if you decide to go ahead and start a business, please make sure that you have enough capitol to get you through the first 6-12 months.

  4. Thanks for this eye-opener 🙂 Hope all best for you and for your blogs in 2012 !

  5. Thanks for this eye-opener 🙂 Hope all best for you and for your blogs in 2012 !

    1. A_DiSilvestro says:

      Yours as well! @2012PeopleLikeThis_com

      1. @A_DiSilvestro THANKS A LOT 🙂

  6. fas says:

    There is no good or bad time to open business per se.

    1. A_DiSilvestro says:

      You’re right it isn’t all about a good or bad time; it’s all about being ready. Thanks for reading! @fas

  7. kirktaylorcom says:

    How about five reasons to rewrite this article?

    1. Exhaustion is non-discriminatory, Well planned businesses run people to their limits in the same way that poor planned businesses do. It has nothing to do with “Start-UP”

    2. Most Start-Up Entrepreneurs hire people who are a known quantity and are hand picked making background checks unecessary.

    3.It’s unrealistic for most Start-Up Entrepreneurs to be able to secure a small business loan. It rarely happens. Lenders borrow money on personal loans as the only option and make sure that they are secured to the max. Businesses don’t get loans until they have an established credit rating which can take years. Landlords are careful about who they will lease office space to often requiring a floor plan, business plan and so on unless the space is low rent to begin with. They won’t get into build-out with a high risk tenant.

    4. Sad to say, but few start-up companies have the quality when they start as they do down the road. Quality comes with learning your business processes through trial and error. If you don’t start you can’t make the mistakes require to achieve success.

    5. Investors rarely invest before you start the business. At least smart investors don’t. You have to establish yourself as being an expert so you have to learn to bootstrap your business at first. Your money is going to be first money in, then everybody that will give to you based off emotions (friends and family). After that, you have to show a track record and then Angel Investors will consider working with you. Business relationships don’t happen until you show that you’re serious and you’re capable of doing what you say you’re going to do. If you don’t start, you don’t have credibility.

    I applaud your effort to guest post on John’s blog and you do talk about things that Start-Up Entrepreneurs face. The spin should be towards helping Entrepreneurs solve problems instead of saying everything your mom, dad, friends and extended family would say to you if you have never done anything before.

    I say, if you have a great idea, you have the guts to do it, and you’re willing to put blood, sweat and tears into making it happen, then do it now before you change your mind!

    Happy New Year’s and bring on #ASW12! See you soon, John….

    1. A_DiSilvestro says:

      I have to say: Was all of this really necessary? I appreciate your comments, but it’s interesting that you talk about how it’s important to be positive (“the spin should be helping entrepreneurs solve problems”), and yet your comment is so incredibly negative. I write approximately 70 articles that get published on various blogs per month, so I’m well aware of the types of articles that typical blogs publish. In other words, I have seen MILLIONS of articles giving entrepreneurs advice about solving their problems. I find this article to be something with a different spin, and I think it’s a great read. The article is about the dangers of starting your business too early–something that I think a lot of entrepreneurs will be tempted to do as we enter the New Year. In a sense, this is giving advice to entrepreneurs.

      You did, however, offer some great points that I think will help readers. That’s what the comment section is all about, so I appreciate that you came up with some great insights.

      With that said, I take a little bit of offense to this comment. Treating a writer as if they are a child who knows nothing other than what their mom and dad tell them is quite horrible! John’s blog is supposed to be a positive place where people offer constructive comments. I do not see this as constructive so much as an attack. A simple “I disagree for this, this, and this” would have sufficed. @kirktaylorcom

      1. kirktaylorcom says:

        @A_DiSilvestro

        I didn’t intend to offend you, but I also wasn’t concerned about it.

        I’m not sure how you could take away that I’m treating you as a child, that’s a little bit think skinned. My point is valid that what you’re saying is exactly what non-entrepreneurs tell their friends and family before starting out. That has nothing to do with you personally.

        You might have taken it negatively personally, but I’m pointing out where it’s OK to take risks, which is positive for the potential Entrepreneur.

        You put yourself out there and share your thoughts, so did I. That’s what comments are for.

        1. A_DiSilvestro says:

          @kirktaylorcom Fair enough.

  8. BobRoberto says:

    I do agree with Amanda as this season is time for family. We could probably open a business by mid January next year when everyone has rested from the long holidays.

  9. Benardkenya says:

    Amanda, I could not agree more. Last January, 2011, I made the very same mistakes you have listed. The sad thing is I never had the advise you are giving, and the good thing is I hope many will be careful after this. Good work and keep up.

    1. A_DiSilvestro says:

      Thank you so much for saying that. It means a lot to me that the things I say could potentially help others. After all, that’s why I do it! I hope your business is doing better than ever now that 2011 is over!

  10. Benardkenya says:

    Amanda, I could not agree more. Last January, 2011, I made the very same mistakes you have listed. The sad thing is I never had the advise you are giving, and the good thing is I hope many will be careful after this. Good work and keep up.

  11. Kenny Boger says:

    well, its still ok to start your business for the new year the only thing is everyone is not around and going to vacation or all sorts of holidays events, it will be a hard start to hire good people and get customers related to business type of work.

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