New year, new venture: When is it the “right” time to start your new business?

4 December 2025

As 2025 draws to a close, you may already be thinking about what 2026 has in store.

The festive break often allows time for reflection. Indeed, you may already have decided that 2026 is your chance to start the new business that you’ve been thinking about for a while.

According to Companies House data published by NatWest Group, more than 426,000 new businesses were registered in the first half of 2025.

Although the new year is typically associated with renewal and fresh ventures, identifying the “right” time to start a business isn’t always easy.

Because a variety of factors influence the decision, here are a few questions to consider if you’re thinking about starting a new business venture in the near future.

Are you emotionally ready?

A good starting point is assessing how you feel emotionally. Are you ready to take on the hard work and stress that comes with starting a new business?

Small business owners have had a challenging time – the Covid pandemic and the ensuing cost of living crisis have both taken a significant toll.

Research published by the Money Advice Trust reveals that a third of small business owners regularly lose sleep worrying about their finances.

In short, being a business owner is stressful and requires you to be emotionally resilient. So, make sure you’re going in with your eyes open and you’re ready to handle the additional worries and concerns that owning a business can bring.

Are your personal finances ready for a business?

Next, consider giving your personal finances a thorough review.

You might not think that your personal finances are important when starting a new venture, as they’ll be separate from your business accounts. However, you need to be confident that you can afford to take on a new venture or understand that you may need to adjust your lifestyle to make it happen.

There are several reasons for this. For example, you may have to:

Give up a paid position as an employee to start your new business.
Sacrifice valuable financial benefits from your employer, such as a death in service arrangement, employer pension contributions, or a company car.
Fund your business for a period – you’re unlikely to generate the profit you need in the first few months of operation.

So, it’s important to plan ahead and budget for the fact that you may need to self-fund the business, at least in the beginning, and you may also have the additional costs of replacing benefits you previously received from your employer.

According to software provider FreshBooks, it takes businesses an average of two to three years to become profitable.

This sobering news means it’s vital that you understand the sacrifices involved when launching your business.

You may also want to check that you have an emergency fund held in an easy access savings account. This should contain three to six months’ expenses to fall back on if you need to rely on it.

What do you want to achieve in the future?

While considering your personal finances, you might also want to think about your long-term goals.

If you’re still in the middle of your career, your aspirations might include buying a new home or maintaining a lifestyle that allows you to go on regular family holidays.

Meanwhile, if you’re approaching the end of your working life, you might have one eye on your retirement plans.

No matter what stage of life you are in, ensure your new business plans align with your future goals.

It’s probably not sensible to use the money you had set aside for your dream retirement in your business. Equally, you may need the money generated by your business to drive you towards your targets.

Your long-term goals are just as important as financial resources, so make sure you include them in your planning.

Have you prepared properly?

Finally, make sure that you’ve done all the necessary preparation.

There are multiple angles to think about before you start a business, including:

Your target market, including whether it’s currently a profitable sector
How you will fund your business, whether from your own funds or from loans
Business protection options, including insuring the business if something happens to you or someone working with you
The tax efficiency of your new business.

Areas such as protection or tax can be complex and difficult to understand. If you think you might need help with this part of your endeavour, we’re here to provide support and bespoke financial advice.

So, when is the right time to start a business?

While this article has covered several important considerations, whether now is the right time depends entirely on your current situation and future goals.

If you have many years of your career ahead and a firm financial base to build on, this could be an ideal time for you to embark on a new venture.

Equally, if you’re approaching retirement and already have an exit plan that still lets you reach your later-life goals, this could also be an ideal opportunity to go for it.

Get in touch

If you’re in any doubt about whether now is the right time for you to start a new venture, get in touch.

We can help you to make informed decisions about your current financial situation and provide advice on how to manage money to achieve your business and personal goals.

Email [email protected] or call 0161 8080200.