For most entrepreneurs, waiting until the next year to launch a new business idea is the most sensible thing to do. However, they could miss a ton of advantages if they don’t take the leap of faith before the year ends.
If you’re wondering whether you should launch your startup before or after 2023 ends, we’re here to help.
This blog will discuss why you shouldn’t wait until 2024 for a business venture.
Eight Reasons Why Now’s The Right Time to Start A Business
While some may think it’s a bad idea to start a business at the end of the year, this approach comes with a few benefits:
You Get to Test Your Idea
If you’re curious to know just how profitable your idea is, the holiday season is the perfect time to do it.
Recent studies have revealed that American consumers plan to spend an average of $985 this winter. This number shows that most people are open to spending more during the holidays.
You can use this time to drum up interest in your services or products by offering discounts and promos. Alternatively, you could launch a soft opening and test how your offerings will perform in the market.
Any profit you make during this time will be useful once you officially start your operations in 2024. Additionally, you can use the feedback you’ve gathered during your soft opening to make changes to your products or services.
You Get More Tax Savings
If you decide to launch your enterprise before the year ends, you can get significant deductions on your tax filings.
Most jurisdictions offer tax incentives to newly established businesses. For example, you can deduct up to $50,000 worth of startup expenses and organizational costs.
Starting your business before 2023 ends allows you to take advantage of these deductions, ultimately reducing your tax liabilities for the year.
You Can Take Advantage of Christmas Sales
Depending on the nature of your business, you’ll have to spend a lot of money buying office supplies and other equipment. Fortunately, you can reduce your expenses by taking advantage of year-end sales like Black Friday, Cyber Monday, and other similar events.
Most retail stores offer major discounts and promos during the holidays, making it the perfect time to shop for office supplies and other equipment.
You Can Avoid Major Law Changes
The cost of setting up a business varies from one state to another. Although filing fees mainly stay the same, they can change over time.
With this in mind, you must be on the lookout for changes in your locality’s fees. This way, you can make an informed decision on when to launch your business.
If your state plans to increase its fees by the next year, you should launch your venture before the year ends. Doing so will help you avoid higher set-up costs.
You Can Beat The Paperwork Rush
It’s very common for entrepreneurs to launch businesses during the first month of the year. This means that government offices are processing higher volumes of applications than normal. If this happens, your paperwork will likely get delayed and caught up in the rush.
You also have to remember that most offices are closed during the holidays, which means people will be clamoring to submit their applications before the scheduled closures.
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So, before the holiday season begins, start filling out your application and make sure you submit it as soon as possible.
You Get to Perfect Your Operations
It’s very rare for small businesses to experience smooth operations during its early stages. It could take you months from your initial launch to perfect your processes.
With this in mind, starting your operations before 2024 starts is best. This way, you’ll be able to iron out any wrinkles in your processes before the new year comes.
As we’ve mentioned, you can initiate a soft opening of your business and use it to test your products and operations. Closely monitor your customers and be open to constructive criticism.
Any feedback you gather during this period will be useful in improving your processes; this includes your internal workflow.
You can also use this initial phase to evaluate your supply chain and optimize inventory management. Once you start operating in full swing, it could take you months before you can get the chance to start fine-tuning them.
By perfecting your operations, you’ll have a much higher chance of securing sustainable growth for your business.
You Get to Plan Ahead
A comprehensive business plan is vital when launching a new business. Think of it as a roadmap you’ll use during your journey to success. It will guide you to the right path as you start your operations.
However, creating a business plan is challenging and takes a lot of time. If you don’t do it before 2024 starts, you’ll have a harder time getting the ball rolling.
We suggest you use the remainder of 2023 to start your strategic planning to avoid this. Take this time to set your goals for the coming year and plan how to achieve each milestone.
You Get A Head Start
Once you’ve finalized your products, operations, and business plan, you can hit the ground running as soon as 2024 arrives. Your preparation during the last few months of 2023 will help you build momentum in the coming year.
Start 2024 On The Right Foot
If you need help kickstarting your business before 2023 ends, look no further than NCH.
NCH is one of Nevada’s leading business formation specialists.
We have a team of experts who will help you start 2024 on the right foot. From building a comprehensive business plan to incorporating your new venture, we’ll be your partner to success.
Aside from this, NCH also offers tax planning services. Our tax experts will help you make the most of the deductions and tax credits you’re entitled to.
Start preparing for your future today and contact NCH. To learn more about our services, visit our website here or call us at 1-800-508-1729.
Disclaimer: The above material has been prepared for informational purposes only, containing opinions of the provider and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Please consider consulting tax, legal, and accounting advisors before engaging in any transaction.