Opportunities often arise when you least expect them.
The COVID-19 pandemic has seen the emergence of telehealth and distance learning, increased the need for cleaning services and cybersecurity, as well as the explosion in popularity for home delivery for just about everything.
From United States recessions in the early 1900s, to the most recent in 2008-09, start-up companies such as General Motors, Microsoft, and Groupon were launched amidst economic turmoil. In addition, the Great Depression brought us Procter & Gamble and General Electric.
Economic downturns – due to a pandemic, recession, or depression – create opportunities for new businesses to thrive. A layoff or losing a job offers the chance for entrepreneurs to follow a dream or make a business out of a passion they have always had.
The “new normal” may bring unique problems and issues driving consumer need for new products and services. With an idea, a plan and the entrepreneurial spirit, now may be the ideal time to launch a small business.
Reasons To Start
Starting a business at any time can be a terrifying leap into the unknown. Add in a mix of economic and health crises, and it may seem like an unfavorable time to start a new business venture. However, those same situations provide the foundation to turn an idea into a successful company.
Here are five reasons to jump in while others are getting out:
- Less competition for resources. As many companies are cutting back on production, more resources are available in the supply chain.
- Cheaper inventory. Businesses choosing to sell inventory as a cost-savings measure, or to increase cash flow, creates an influx of low-cost products in the marketplace.
- Lower leasing rates. One unfortunate outcome of an economic downturn is businesses are closing their doors. Because of this, landlords may be willing to negotiate contracts to fill empty spaces.
- Top talent is available. Widespread layoffs across all levels of employment mean potential employees with industry experience and knowledge are looking for work.
- E-commerce requires few resources. An online store can be up and running without much money by utilizing free online services to secure a domain name and create a website.
Fear can be paralyzing and is a major factor in not starting a business. Overcoming the common fears can open the door for great successes.
Fear of the unknown. Even if entrepreneurship and all that it entails is unfamiliar territory, joining networking groups or adding entrepreneurs to your current network provides the opportunities to learn from others.
These connections will prove invaluable in understanding the market, building awareness of your product or services and developing business relationships.
Fear of failure. Risk is part of any new venture. And, starting a new business is no different. Hard work and perseverance are rewarded with progress and successes. Treat inevitable setbacks or losses as the learning experiences needed to become a stronger business.
Fear of rejection. Even seasoned business owners face rejection when selling new ideas, products or services. As a new business owner, it’s important to surround yourself with others who share the vision and passion for this new business and will support the business regardless of roadblocks.
Fear of income instability. The security of a regular paycheck can be difficult to leave behind. New businesses usually take time to be profitable and having funds available and understanding cash flow can keep the business open during that time.
Now Is The Time
Starting a business during tough economic times such as a pandemic can make sense when the product or service meets unfulfilled needs of consumers. Take advantage of less competition and new opportunities to share an idea or passion with others. And don’t let fear be a roadblock.
Remember, all businesses start as new businesses. What makes some succeed while others fail is a combination of market conditions, good timing and courage to take the chance.
To find out more about how to approach starting a business, get started by doing some research on our Business Banking page.