3 Reasons to Start a Small Business Before the End of the Year

You may want to take the leap sooner rather than later.

There are plenty of benefits to starting a small business -- financial and otherwise. But kicking off a business venture isn't something you can just dive into.

For one thing, it commonly takes small businesses many months, if not years, to turn a profit. So before you start a venture of your own, you'll want to make sure your savings account is well-stocked with enough cash to cover many months of living expenses (think a year's worth, if not more).

But let's say you're already there -- you have a great idea for a business, your credit is solid, and you have plenty of money in savings to tap if it takes a while for your new company to generate revenue. In that case, you may want to get moving on starting that business before 2022 comes to a close. Here are a few reasons why.

1. You're worried about getting laid off during a recession

For months on end, economic experts have been sounding dire warnings about an impending recession. Of course, that doesn't mean we're guaranteed to experience an economic downturn in 2023. But it's something we should all be prepared for.

Meanwhile, you may work in an industry that's particularly vulnerable to recessions -- say, retail or hospitality. If that's the case, and you're concerned about getting laid off in the event of a recession, then you may want to start your own business soon so you don't wind up out of work.

Being unemployed can have more than just financial consequences -- it can have emotional ones, too. So starting a business might help you get ahead of that situation.

2. You may have an easier time getting financing now

Many small businesses need funding to get started. If a recession hits in 2023, we can bet that lenders will start tightening their standards and loaning out money less freely. And that's all the more reason to start a small business now -- you may be more likely to get financing if you apply for a loan in the near term, while the economy is still in good shape.

3. You're miserable at work and need a change

No matter what you do, if you're considered a full-time employee, then you probably spend many hours a week hammering away at your job. And if it's not a job you enjoy, but rather, one you detest, that could really impact your mental health for the worse and lead to a full-blown case of employee burnout.

Rather than stick out a bad job, take the leap into starting your own business if you're ready financially and have thought things through. It could work wonders for your outlook -- and make you a much happier person to be around during the holidays.

It's never a good idea to decide to start a small business on a whim. But if it's something you've been planning and saving for for quite some time, then it could work to your benefit to kick off that business over the next couple of months rather than wait.