Is 2022 a good year to start a business? Here’s when the best time to start a business.
Is 2022 a Good Year to Start a Business: People have been trying to predict the future of business since the dawn of time – and it’s still not an exact science! If you’re thinking about starting your own business in 2022, it can be hard to tell whether that year will be particularly good or bad for launching your venture.
Is 2022 a Good Year to Start a Business
In fact, experts are still divided on when the best years to start new businesses are! So how can you tell whether or not 2022 is the right year to start your business?
Why Choose 2022
We’re currently in an economy that seems to favor a certain type of company, one whose business model relies on hefty capital investments and economies of scale. As long as venture capitalists are still raising hundreds of millions of dollars, companies will remain unicorns—that is, valued at more than $1 billion. But what about ten years from now?
Will VCs still be funding single-digit numbers like Uber ($50B), Lyft ($15B), Airbnb ($10B), and Pinterest ($11B)? Or will those numbers have doubled or tripled by then, as some people predict? Even if they do triple (which is unlikely), there might not be room for all that growth.
Key Things to Consider
While many factors play into your decision of when to start a business, most business owners agree that their best advice for first-time entrepreneurs is to get started sooner rather than later. There are several reasons for this but two stand out: First, it’s easier to take advantage of favorable industry and macroeconomic trends earlier rather than later.
Second, starting before you’re ready is less risky because mistakes can be made inexpensively and without too much impact. In fact, it may be beneficial for prospective business owners to intentionally start unready, so that they learn from their mistakes. A seasoned entrepreneur once told me (after I asked him when he’d recommend starting my company), If you’re not embarrassed by what you do at year 1, you waited too long.
What are the best business ideas for millennials?
In 2013, there were about 73.3 million millennials in America. By 2020, that number is expected to swell to 81.1 million—roughly 34% of all Americans! It’s clear that millennials wield serious purchasing power and influence, but they have different values than previous generations, so it can be tricky to find business ideas that are resonant with them.
Here are some Millennial-owned businesses that could be worth your time: 1) Food trucks are wildly popular among millennials—and who doesn’t love a good food truck these days? 2) Take advantage of their need for convenience by starting an online grocery delivery service or a meal kit delivery service.
3) Millennials tend to value experiences over material goods, so why not start an adventure travel company? 4) You can also try out ecommerce if you want something more traditional. 5) If you’re looking for something less risky, consider pet products or home goods as potential business ideas for millennials.
Best industries for new businesses
In order to start a business, you need to determine where you’re going to focus. Will it be manufacturing, service-based, or tech? Each industry has different things that can make them profitable. The best industry for new businesses is one where there are untapped niches and less competition, meaning there’s more opportunity for your startup to stand out in your market.
If you have an innovative idea or business model that’s never been done before—like Uber and Airbnb—you have much more potential of becoming successful with very little competition. If you decide to create something unique that hasn’t been done before and works out, it will be much easier for you to compete with other businesses later on because consumers will know what they want. It’s important to remember that not all industries are good for startups.
Industries like healthcare, education and legal services require long hours and don’t offer huge profit margins, which makes it difficult to sustain a small business. It may be difficult to find success in these industries unless you go after a niche within those industries.
For example, if you run a dental practice but only work with patients who have cavities or fillings as opposed to complete dentures or implants, then it might not take as many hours per day but could still bring in some revenue. It also means that you won’t have as much competition from dentists who do fillings since there aren’t many people who specialize just in those procedures.
Once you’ve settled on an idea, your next task is to decide where it makes sense to start your business. There are plenty of good places to establish a new business, but some cities make it easier than others. Most everyone knows Silicon Valley is one of those places—it’s not just that there are lots of tech companies or venture capitalists there; there’s also plenty of support infrastructure (in terms of services like office space and special-interest meetups).
Which makes getting started easier for entrepreneurs. Which U.S. city offers young businesses the best environment? According to recent data from WalletHub, it’s Austin, Texas. In fact, six of the top 10 cities were located in Texas. That said, if you’re looking for more traditional options with lower costs of living and less traffic congestion, consider Charlotte or Raleigh-Durham instead.
Competitors, Alternatives, and Market Size
Ask yourself whether there are any competitors and how they stack up. Are they stronger than you, weaker than you, or equal to you? Also, think about whether your customers would have alternative ways of solving their problems or buying what you are selling. If there are alternatives available, is it feasible that people might choose them instead of yours?
Try to get as detailed an idea as possible about who might be considered competitors and what those competitive products and services offer. If customers don’t really have other viable alternatives for addressing their needs, then that’s one less thing for you to worry about. The same logic applies to researching market size—the more niche-specific your offering is, the smaller your overall market can be before getting too small for your business model to work.
In some cases, however, a narrow focus may be exactly what you want. A key question to ask here is: How big do I want my business to grow? That will help determine how many potential customers you’ll need to reach before making money. You should also try to determine if demand for your product or service will increase over time or remain steady. This can impact pricing decisions and future growth plans.
Is Your Idea Original Enough?
Being an entrepreneur is difficult enough, but doing so with an unoriginal idea is even more complicated. And if you’re not careful, you could end up creating a business that isn’t sustainable and never achieves success. To make sure your idea is original, it’s worth spending some time looking at what else is out there and seeing how your idea differs from those of your competitors.
If you don’t find any difference or competition, then it might be time to reevaluate and find something new. The last thing you want is to create a business based on an idea that already exists—you won’t stand out, and you certainly won’t thrive. During your research, it’s also important to take note of what kind of business model (or business plan) other businesses are using.
You’ll likely find some common trends as far as how they operate, who their target market is, and what kind of growth they experience over time. That’s because many entrepreneurs often steal good ideas from one another; after all, imitation is one way to innovate! With these details in mind (and plenty more), you can figure out whether or not your concept has the potential for long-term success.
Last thoughts on if you should start a business in 2022.
Let’s face it: starting a business is hard work. It takes an incredible amount of focus, and often money. While you might be certain that you want to start a business, that doesn’t mean it’s right for everyone. If you don’t have any cash reserves to dip into, or if your savings are tied up elsewhere, you probably should steer clear of entrepreneurship.
If starting and running your own company is important to you, consider small-scale ideas like consulting services or selling homemade products on platforms like Etsy and eBay. Be wary of risks when choosing your business idea – making forecasts about how well an idea will do can be tricky since so many factors play into success rates. Still, there are some industries that seem more promising than others. According to CNBC, retail sales and healthcare spending are expected to increase by over 5% in 2018.
The manufacturing industry is also expected to see growth as businesses continue their investment in technology. Finally, according to Forbes, several states rank highly as good places for business including Texas, California, Florida, and New York. These predictions may seem far off now but knowing what’s coming down the road could help you make better decisions about your career path and plan accordingly.
The best time to start a business is now, but many factors should be considered before you leap into entrepreneurship. Just remember that smart planning and calculated risk-taking are important if you want to succeed.
And of course, always look at your financial situation before making any decision like this. You never know when an emergency may strike! Now that you have some information about creating your own success story as an entrepreneur.