Small Business Tips

Why 2016 Will Be a Great Year to Start a Business

Note: I originally wrote this post for Medium and am re-publishing it here for my regular readers. Jon Dyer

Has starting a small business and becoming an entrepreneur long been on your bucket list? It may be time to upgrade that goal to “New Year’s resolution.” 2016 is shaping up to be a great year for those looking to escape their nine-to-five job and launch their own company.

According to a recent post by Inc., there are many reasons why now is the time to launch your small business. For one small business loan approvals are at their highest point in five years. Additionally online lenders such as Lending Club and OnDeck give entrepreneurs more options for funding down the road than ever before.

Another major development in small business financing over the past year has been the expansion of equity crowdfunding. Now start-ups can help fund their businesses by offering investors a piece of their company much in the same way that films and tech gadgets have turned to sites like Kickstarter. Previously this practice had been limited to accredited investors (A.K.A. “millionaires) but a ruling by the SEC this past November will allow smaller investors to participate starting early next year. Under the new regulations companies can raise up to $1 million per year from crowdfunding.

Not only are small businesses hot right now, they promise to be a popular topic in the coming months. With 2016 being an election year small business will be a big talking point as politicians lay out there plans to grow the economy. Additionally many Americans have begun taking pride in shopping small. A survey cited by Inc. found that many shoppers liked supporting their local businesses and appreciated the enhanced level of service they received from them when compared to big box stores. This even led 60% of respondents to state they wouldn’t mind spending a little more in order to support a small business.

While all of these are great reasons to start a small business in 2016, the biggest incentive is your happiness. Studies have shown that, on the whole, entrepreneurs and the self-employed are happier than those with traditional jobs. If you’ve dreamed of being your own boss achieving that goal could have a positive effect on your life that can’t be overstated.

For those with entrepreneurial aspirations 2016 could be your year. However never forget the importance of having a well-thought-out business plan including expansion ideas. Additionally you should take time to consider if it’s the right time to leave your day job or whether you should start your small business on the side. Once those pieces are in place, there’s nothing stopping you from becoming the entrepreneur you want to be in the upcoming year.

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