Starting a business is a challenging and involved process. From its conception to attaining funding to launching and marketing, becoming an entrepreneur requires a lot of passion. Because of the current economic downturn due to COVID-19, those planning to start new ventures might be rethinking their launches. However, a recession may actually be one of the best times to start your business, and here’s why:
Rising Unemployment Rate Means More Talent
If you’re looking to hire the best of the best in your industry, starting your business during the recession has an unexpected benefit. Since the closing of many state economies has forced massive layoffs, more professionals are seeking employment. This gives you the opportunity to swoop in and create your dream team!
There are New Problems to Solve
The COVID-19 pandemic has created new problems in peoples’ everyday lives, and there may not already be a good remedy available to those struggling. If you can position your company to solve these issues, there may be an increased market share for you. For product-based businesses, this may mean manufacturing new essential items like masks and hand sanitizer. Service-based businesses can capitalize on social distancing requirements by setting up infrastructure that allows them to operate remotely. This is especially profitable if competing companies in your industry have not yet done so!
There is also an opening to serve customer’s unique emotional needs during this time. If you can foster a sense of connection and community despite distancing requirements, make people feel safe and secure, and/or give your clients a sense of control, you will be creating a loyal customer base from the get-go.
People are Open to New Ideas
Coronavirus and the accompanying social distancing regulations have drastically changed the way the world operates. With a massive shift to telecommuting and many businesses closed or operating at limited capacity, people are adapting to their rapidly shifting environment constantly, meaning that they are used to change. According to Corp Net, this new consumer adaptability creates an opportunity to reach more customers than you might have previously. This is especially true if you are selling products or services online, since e-commerce has seen an uptick since the start of the pandemic.
Consumers Want to Spend
After several months of being “stuck” inside their homes, consumers are itching to spend money. Whether it’s impulse buying goods to make their time in quarantine more enjoyable or getting back into the world to visit shops and restaurants, your potential customers are ready to support your company by purchasing your products or services.
As someone with the passion, problem-solving skills, and gumption to start a new business, it is likely that you are more than willing to put the time and effort into the economic hurdles ahead of you during this unique time. Rather than letting the economic downturn delay your launch or make you abandon your startup plans altogether, look at the positives to starting a company during a recession! When you need help with bookkeeping and financial services, don’t hesitate to contact us to get your business started on the right foot.