There are approximately 400 million small businesses worldwide, but one of the most common questions that prospective new business owners face is — when is the best time to launch their company?
Numerous studies have conflicting findings; could January be the best time to begin your business, new year, or fresh start? Or is one of the summer months ideal, because you are relaxed and rejuvenated?
This begs the question, when is the best time to start a business in the U.K?
Interested in this, Reboot SEO Agency examined Companies House data which includes the incorporation and dissolution dates of 5,062,612 businesses that began between 2000 and now. From this, they determined the average time it took for a business to close and the number of businesses that were still in operation today.
The best month to start a new business
According to Reboot SEO Agency, the best month to start a business is March, with 38.36% of businesses still in operation today. Businesses established in March lasted an average of 1,534 days, or 4.2 years, which is 4% longer than September, the worst month for establishing a business.
March is a popular month to start a business because it ensures the closest alignment between your fiscal year and your company year.
June is the second-best month to start a business, with 38.15% still in operation today. In June, 432,007 businesses were formed, with each lasting an average of 1,495 days or 4.09 years.
May ranks third, with 37.97% of businesses that began this month still in operation today. This month, 423,768 businesses were formed, with 160,866 still in operation today; the businesses lasted an average of 1,505 days, or 4.12 years.
Fourth is July, with 37.85% of businesses formed that month still in operation, lasting an average of 1,487 days, and December rounds out the top five, with 37.51% of businesses formed in the final month of the year still in operation.
Despite numerous reports claiming that September is the best month to start a business due to productivity, September is actually the worst month of the year to start a business, with only 35.44% of businesses formed this month still operating today.
- Reboot SEO Agency wanted to know when the best time of year is to start a new business.
- They did this by analysing extracted Companies House government data, which showed the incorporation and dissolution dates of all businesses in the United Kingdom that began between the year 2000 and the present (5th September 2022).
- Each month was grouped to show the average amount of time a company survives after incorporation before being dissolved (excluding companies still currently live).
- The number of companies that have been dissolved and those that are still active were also recorded by month, as well as the percentage of companies that are still active today.
- 5,062,612 businesses were analysed in total.
- After collecting all of the data, the months were ranked from the highest number of businesses still in operation to the lowest, thus creating a list of the most ideal months to begin a company.
- Data was collected on 05/09/2022 and is accurate as of then.