Like many people, you probably began 2020 filled with plans and optimism about the future. Then along came Covid-19 to turn the world upside down. The impact the global pandemic has had on the world is almost beyond comprehension. Besides the toll it has taken on individuals and families, it has certainly wreaked havoc on untold thousands of businesses.
It can, and here are 4 reasons why:
With all of that in mind, why is there so much chatter about now being a good time to start a business? Can it be true?
Within a Crisis Lies Opportunities
No one is happy about a crisis, or the economic recession that often accompanies it, but that doesn’t mean all hope is lost. Disney, General Motors, FedEx, Microsoft, and even Airbnb were all started during a recession. And that’s just a few examples because there are several others who had their start during a time of economic downturn, yet went on to enjoy great success.
Whenever there is any kind of crisis, there will arise specific problems that will need to be solved. Perhaps a business has historically operated as a brick and mortar establishment, but is now facing bankruptcy if they can’t figure out how to take their business into the online space. Some jobs may become obsolete and people will need to learn new skills in order to survive financially. The list could go on and on.
Look around and observe what issues businesses, or individuals, are facing. What product or service can you offer that will help them solve their problem? Answer that, and you just may have your business idea.
Fewer Competitors
In a recession, there will be far fewer well-funded competitors for you to go up against. That equates to more market share for you, and increases your odds of being successful. A recession may also be a great time to think of businesses ideas that others aren’t considering. I promise there are few people thinking about a travel-oriented business right now, but travel will return at some point. That’s just one example, but it’s good to break away from the pack and consider ideas that others are avoiding right now.
More Available Talent
If your idea requires you to hire others to help you build a business, I’ve got some good news for you. During a recession, the pool of available talent grows significantly. Due to the current pandemic, millions of highly-qualified and hard-working employees have been let go by their companies. Like you, a few may try to start their own business, but most would be happy to go to work for one.
It’s sad when people lose their jobs during a crisis, but by starting a business you not only help yourself, you help others by creating opportunities for them to get back to work. It’s a true win/win situation.
Funding is More Accessible
It might sound crazy, but economic uncertainty can help create a more favorable environment for borrowing money to get your startup going. Interest rates on loans are lower, making them more affordable. Plus, investors who know their stuff will recognize the opportunity to get more out of their investment by investing in your startup.
With what is expected to be the highest rate of unemployment since The Great Depression, The 2020 Pandemic may very well provide a once-in-a-lifetime opportunity for entrepreneurs to develop ideas that will lead to a revenue generating business.