How Long Before Your Business Is Established?
What is the average time to startup a business? How long does it take to start an online business? How long does it take for a business to be successful? Starting a business venture requires financing, dedication and time. Focusing on the time factor of starting a business, how long does it take to start your own business? There are several types of business which require varying degrees of time to start. Time is an important factor to establishing a thriving and successful business. After having met all other requirements such as financing, registering a business name, and writing a business plan among several other requirements, other equally important requirements need time to enable a smooth takeoff.
What time will it take to start a new business?
A business may require structures such as an outlet office or plant as the case may be. This may be built, rented or renovated depending on the situation on ground. Building or renovating structures to be used for a business add to the length of time before a business commences. In this article, we will provide answers to how long it will take to establish/start your own business. We start with the following business startup timeline;
Part Time Vs Full-Time Businesses
A business may either be a part-time venture or a full time business depending on how you want it to be. This can influence the length of time required to start such business.
- Part-Time Businesses
Many businesses start as part-time businesses due to the fact that they are not financially stable enough to bring in considerable income or profits. Thus, you may want to retain your paying job, while putting the necessary measures and support to ensure the survival and growth of your business. In this situation, you only quit your job when your business has become stable enough, resulting from well established structures over time. This may take 2 to 3 years to establish.
An advantage of starting part-time is that it reduces a considerable amount of pressure, as well as attendant risks which come with starting a business full-time. Although the growth of your business may be gradual, it ensures that growth happens naturally without much interference especially regarding income from the business, as all profits realized are ploughed back into it, resulting in uninterrupted growth.
A part time business has its own disadvantages as the owner is not able to fully focus his/her attention on marketing and building client trust. This may result in unresolved complaints from clients who may feel that the long delay in resolving their complaints is due to negligence. Fatigue may also result due to the little time to rest in-between your job and your business.
- Full-Time Businesses
On the other hand, running a full time business requires you whole time and attention. It means that you may have all the financing required to start the business, and therefore spend time ensuring that all the structures necessary for the full take off and the achievement of sustainable growth are put in place. It takes lesser time for a full time business to start, as every activity is channelled into ensuring that it becomes successful.
A downside to starting a full time business is the many risks involved which are absent in a part-time business. However, these risks can be surmounted by nurturing your business with patience, dedication, focus and determination.
The Type of Business
The length of time required to start your own business also depends to a large extent on the type and scale of business you intend starting. There are home businesses as well as large-scale businesses. These have different structures, and require different lengths of time for full take-off. Home businesses are of different kinds too. There are those which are online, and require only a computer and an internet connection. For these types of businesses, they can be started almost immediately.
Other types of businesses may require you to hire staff, purchase equipment, and build or rent an office among several other requirements. For these types of businesses, you require a longer time frame to establish. This is true especially for product based businesses. The many requirements for the smooth and full take off of such a business may range from 5 months to a year or more depending on the size of the business.
Contributory Factors to Time Required in Starting a Business
When starting a business, there are requirements which must be met for the successful take-off of the business. This may lengthen the timeframe for starting a business. Some of these include; finding an ideal location for your business. If you are not going to be running your business from home, getting the perfect location may take from 3 to 4 months.
Other requirements like business registration, obtaining an EIN (Employer Identification Number) from the IRS (Internal Revenue Service), application for funding and purchase and installation of equipment can take up to a year. Go to https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online to find out how to apply for an EIN.
Among the long list of requirements, the ones which require the most time include obtaining a loan from a bank as well as finding a convenient location for your business. Before obtaining a bank loan, certain requirements must be met. Visit https://help.lendingclub.com/hc/en-us/articles/214502877 for more on requirements. Some of these include a well written business plan (which in itself takes time to write), information on operational structure, as well as your financial statements among others. Finding the right location is not enough as you would have to look for a suitable structure which meets your requirements. In the absence of one, you may have to build one, and this takes time.
In view of the above information, how long does it take to start your own business? There is no single answer to this question, as you will have to look at the tools and resources available to you, as well as how these can be put into good use at arriving at an agreeable end within an acceptable timeframe.