There is a popular belief about stock market investing – don’t try to time it, instead “dollar cost average.” I agree.
Dollar cost averaging means that the timing of our investments is not nearly as important as simply investing and to continuously invest over time. Time averages out the volatile swings of any given moment. The more time, the better.
When it comes to dollar cost averaging the best time to get started is now. The sooner you invest the sooner you benefit from the value of investing over time.
The investing lesson translates to your own business. After all, you have invested your life (and probably most of your money) in your start-up. And you likely own the vast majority, if not all, of the stock. It’s time to “dollar cost average” your start-up.
Common sense would suggest that you never start a business in bad economic times, since it’s financially treacherous. But is it also during these tough times that your aspiring competitors are dissuaded from starting a business themselves. So, perhaps it is the best time.
Conversely, great economic times are the financially prudent time to start. But it is also the time when your competition will get the courage to launch. So, perhaps it is the worst time.
The fact is, no one can determine the best time to start a business. There are too many variables. No matter which day you pick, there will always be a statistic that shows there was a better time. Therefore don’t try to time it.
Instead, take the lesson from investors and dollar cost average. Afford yourself as much time as possible for your business to navigate the ups and downs. And the only way you can afford yourself the most time is by starting now.
Should you start now, or wait? The answer is clear. Start now.