The pandemic has many downsides, like the increased difficulty of beginning a new enterprise. Funding, for example, proves complicated as financial institutions become tight-fisted with their money. So, aspiring entrepreneurs find it hard to get cash.
Existing businesses have also been hit hard by the coronavirus, resulting in higher levels of unemployment all around.
Fortunately, many with jobs have saved a substantial amount of money during the pandemic using financial instruments such as tax-free ISA shares and stocks and money market mutual funds. This increase in disposable income could translate easily into golden business opportunities for the savvy entrepreneur.
A depressed economy doesn’t have to mean the end of the world. Hard times build good character and create good businesses. The best way to take advantage of this unique opportunity afforded by the pandemic is outlined in this article, starting with the benefits.
Benefits of starting a business during the pandemic
Common sense dictates that starting a new venture while the world is in chaos is not the best idea. Yet, companies founded during difficult times are better able to weather storms than their fair-weather counterparts.
Because most ventures launch during economically robust times, pandemic-era businesses enjoy the exclusive pleasure of having fewer competitors with whom to deal. During uncertain times, existing organizations do not want to spend money drumming up new ideas. Here lies a gap for an enterprising individual to contribute bold, original ideas to the marketplace.
Lurking in the turbulent economy are increased cost savings for newcomers who wish to open a business at this point. Operating expenses decrease as things like fixed cash outflow – mortgage, for example – can now be appropriated at inexpensive rates. Novice business owners can also benefit from their more influential bargaining power. They are in a position where they can come to agreeable terms with various stakeholders and develop beneficial new business relationships as a bonus.
New businesses stand to benefit from spiked levels of customer loyalty. This consumer-facing advantage contributes significantly to the permanence of a small organization. Country-specific tax incentives also aid business robustness. In the U.K., for example, small businesses receive VAT relief and have grants earmarked for them in the national budget.
Eligibility for government assistance will largely depend on the organization of the business in question.
Use market research to choose the right business type
When uncertainties arise, a sound organizational setup will stand any entrepreneur in good stead. Market research provides a wealth of information that can aid the decision-making process in the early stages of beginning a business.
Studying the business environment – particularly the activities of similar companies – can inspire prospective merchants. In the marketplace of ideas, there is often no need to reinvent the wheel. By offering minor changes to already established, successful commercial concepts, a new enterprise can easily make the best of the pandemic.
Analyzing future customers is another way to get valuable information for planned business ventures. Well-organized focus groups allow participants to describe their attitudes towards products or services in their language. This information is necessary feedback for those looking to dip their toes in entrepreneurship.
There are several ways to seize the opportunities afforded by the pandemic. Some business types that are thriving right now include cleaning services, virtual exercise sessions, and mask-making.
COVID-compliant surroundings are in high demand. Both corporate bodies and private individuals increasingly require expert cleaning services in the New Normal. For this type of business, demand will very likely outlast the pandemic.
A healthy immune system is a somewhat effective weapon against the coronavirus. Keeping fit is a great way to boost the immune system. Ordinarily, going to the gym formed part of most people’s health regimes. However, the pandemic tangibly hit the exercise industry. It bounced back through the popularization of virtual exercise. In this way, the fitness market cleverly demonstrated its resilience and ability to reinvent itself.
Using masks as protective gear is common for non-essential workers. Everyone wears one now out in public. As the pandemic rolls on, consumer demand is increasing for chic and trendy masks. For example, many actors during awards season often have designer masks to match their bespoke outfits. Large corporations have contributed to the demand by having their employees wear trademarked masks.
Whatever business type a budding entrepreneur chooses, a key ingredient is the new company’s flexibility.
Part of staying adaptable as a new business is writing a recession-proof business plan. A detailed strategy like this will show prospective investors, vendors, and other stakeholders that the individual behind the enterprise knows what they are doing.
Separating private funds from company funds is a solid strategy that will help a novice firm remain flexible. The wise entrepreneur will open a dedicated bank account for business operations and budget prudently so the new business can endure.
It was mentioned above that cost savings are lurking in upheaval caused by the pandemic. Human Resource is an area in which a company can demonstrate flexibility and prudence. Rather than adding full-time staff members to the payroll, begin by subcontracting talented individuals as needed. If it is necessary to hire any employees, honesty about what the company can afford to offer is a good policy.
Marketing online is about more than selling goods virtually. A thriving online personality based on empathy and efficiency helps a business to stand out.
Empathy is enhanced when a business makes clever use of its social media accounts to engage its client base. Companies demonstrate efficiency when they make the most of technology to enlarge their market reach. Innovative email campaigns and user-friendly websites play a big part in crafting a company’s virtual image.
Overall, it is a good business practice to have a robust online presence. Marketing in this way increases the longevity of new organizations.
Contrary to received wisdom, it is possible to begin a small business amidst challenging global circumstances. Success depends on flexibility, a reliable online presence, and a sturdy business plan.
No one knows how long the pandemic will last. Plucky entrepreneurs who show foresight in their business planning will do well in current and future uncertainties.