For those looking to become business owners in 2019, it’s not too early to begin the process.
Guidant Financial, a leader in small business financing, believe that there are big benefits to getting started on a business ownership journey before the New Year. They know well what it takes to become a business owner and offer tips to understanding advantages from a funding perspective.
“People often assume that it is a good idea to wait until the beginning of the year to start a new business, when in fact there are clear advantages to starting now. Each year we are able to assist entrepreneurs in December, making real differences in helping them achieve success with their new business moving forward,” said David Nilssen, CEO of Guidant Financial.
Here are some of the top four reasons pursuing business ownership now rather than waiting for the New Year to begin is a good idea:
1. 401(k)s are at their highest annual value at year’s end.
The market is moving into a period often referred to the “Santa Claus rally,” when 401(k)s may be near their highest annual value. Even with taking into account the recent volatile market activity, it remains near all-time highs. If using your retirement funds to buy a business via 401(k) business financing is of interest, the end of the year may be the best time to get started if a person wants to make the most of the funds in a nest egg.
2. Interest rates are still affordable.
SBA loans continue to be an extremely affordable way for business owners to secure capital, with prime interest rates just over 5 percent. Even with rate hikes this year, rates haven’t been this low since the 1950s. In fact, Guidant’s been averaging a 96 percent closing rate on SBA loans while big banks average only 23 percent.
3. Sellers are more motivated to make a deal.
If interested in buying an existing business, now may be the best time to negotiate a deal. Many entrepreneurs who are selling their businesses around the holidays are hoping to close their books by the end of the year. If a person is able to move quickly to close the deal, the seller may be willing to lower the price or offer other perks.
4. Iron out wrinkles before the new year.
Few small businesses experience immediate success when they open their doors. It takes time to make sure processes run smoothly and to generate the kind of consumer interest that will translate into sales. But if a person can open a business at the end of the year, they’ll be able to use the days and months leading up to the new year to take care of any front-end logistics, so the business is fully operational by the time the ball drops.
Here are a few other reasons why starting a business at the end of the year is beneficial:
- Beat the paperwork rush. In order to become a legitimate small business owner, a person needs to file documentation with local and state government (things like business licenses, permits, tax IDs, etc.). By completing these forms now and filing them sooner rather than later, they’ll not only avoid having to deal with government office closures during the holiday season, but they’ll beat the rush that inevitably comes as people try to get things filed before the end of the year.
- Take advantage of end-of-year savings. It’s not just consumers who can benefit from the many sales and coupons offered this time of year. As stores prepare to clear inventory, business owners can save on office supplies for the new business.
- Cash in on holiday revenue. The surge in spending that accompanies the holiday season makes it the perfect time for a new business to increase its sales potential. This continues to be true in 2018, with Deloitte predicting holiday sales at $1.10 trillion, growing 5 and 5.6 percent from last year. If it’s a matter of deciding when to open the doors, consider doing so in November – December to take advantage of those boosted profit margins. Another possibility is hosting a soft opening in December and celebrating a grand opening after the new year has rung in.
When a person is ready to take advantage of these benefits and start on the entrepreneurial journey, securing business financing should be the first step. Similar to buying a home, getting pre-qualified early in the process allows a person to scope out the perfect business that fits their budget and lifestyle.
The article was originally published on PRWeb.
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