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Now that the holiday season is approaching, you may be wondering if you should postpone your entrepreneurial dreams until the new year. But believe it or not, now is still the time to start a business, or at least pursue your goal of business ownership.

Here are top four reasons you should pursue business ownership now rather than wait for the new year:

1. 401(k)s are at their highest annual value at year’s end.

We’re moving into a period often referred to the “Santa Claus rally,” when 401(k)s may be near their highest annual value. 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 you want to make the most of the funds in your 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 4 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 you’re 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 you’re 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 you can open your business at the end of the year, you’ll be able to use the days and months leading up to the new year to take care of any front-end logistics so your 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, you’ll need to file documentation with your local and state government (things like business licenses, permits, tax IDs, etc.). By completing these forms now and filing them sooner rather than later, you’ll not only avoid having to deal with government office closures during the holiday season, but you’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 in November and December. As stores prepare to clear inventory, business owners like you can save on office supplies your new business will need. Black Friday can offer especially attractive prices on big-ticket items like tech gadgets, office equipment and furniture. See a sample small business Black Friday shopping list here.
  • 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 is especially true in 2017, with Deloitte predicting holiday sales could top $1 trillion. If it’s a matter of deciding when to open your 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 your grand opening after the new year has rung in.

If you’re ready to take advantage of these benefits and start your entrepreneurial journey, securing business financing should be your first step. Similar to buying a home, getting pre-qualified early in the process will allow you to scope out the perfect business that fits your budget and your lifestyle. Let us help you out: Get pre-qualified for business financing now.


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