Starting a New Firm: Making the Most of the "Window of Opportunity"

Starting a new firm when its "window of opportunity" is open is crucial because this is a period when the conditions are most favorable for its success. Founders who invest their own money show a strong belief in the firm's prospects, and such commitment is key to attracting additional investments from angel investors and venture capitalists. These investors can provide not just financial resources but also valuable advice and oversight, which are essential in the volatile early stages of a startup.

By launching during an open window of opportunity, founders can capitalize on favorable market conditions, minimize competition, and align with consumer demand in order to maximize the firm's chances for profitability and long-term survival. This strategic timing allows the new firm to establish itself in the market more easily and gain a competitive edge over other businesses. Additionally, the support and funding from angel investors and venture capitalists can help the firm grow and expand at a faster pace.