Should You Start a Business at The End of The Year, or Wait?

For many entrepreneurs with a great business idea, waiting to officially launch it at the beginning of a new year (even if they’ve got everything in place to start it right away), often seems like the sensible thing to do. However, doing so at the end of the year could actually be more beneficial, and here are 7 reasons why:

1. 401(k)s may be at their highest annual value

The end of the year could be a great time to make the most of the money you’ve saved up in your retirement fund, as 401(k)s may be at their highest annual value at this time.

2. Interest rates are still affordable

With prime interest rates at just over 5%, SBA loans are still a highly affordable way for business owners to secure capital.

3. Brokers and sellers may be more motivated

A lot of entrepreneurs who sell their businesses around the holidays, hope to close their books by the end of the year, and if you want to buy an existing business, you might get a quicker, or better deal at this time.

4. Wrinkles can be ironed out before the new year

When opening their doors to customers for the first time, many small businesses don’t experience immediate success, but if done so towards the end of the year, this period can be a great time for ironing out any problems and making sure that processes are running smoothly by the time the new year rolls around.

5. Get your filing in before the great rush

Filing things like business licenses, permits, tax IDs and so on, must all be filed with local and state government, but if you can get all of this done before the end of the year, not only will you avoid government office closures over the holiday season, but you’ll also avoid the inevitable surge of people trying to file before the end of the year.

If you’ve got a great business plan and are keen to set the wheels in motion, why wait for the new year? Use the last couple months of the year to take advantage of boosted profit margins, or consider hosting a soft opening in December and launching it officially (and in great style!) once the new year has been rung in.

For more detailed and up-to-date guidance for entrepreneurs, talk to a tax and small business specialist.

At Heyer Inc, we proactively assist our individual and small business clients in meeting their goals. Our key area of focus is ensuring that our clients remain compliant with federal and state tax laws by providing them with high quality accounting and tax services Miami. If you are looking for an individual accountant in Miami, heyer inc would be a right option.