According to research conducted in collaboration with researchers from the National Bureau of Economic Research The Covid-19 pandemic has put massive stress on the American economy as over 100,000 small-scale businesses shutting down permanently. However, despite this, an increase in U.S. new business applications reached a record high of 13 years according to a study from U.S. Census Bureau data obtained from the Wall Street Journal.
What motivates these courageous entrepreneurs to set up a business in these times of unprecedented change? A recent study found the fact that 27% of the new entrepreneurs were let go from their jobs full-time and 51% saw an untapped business opportunity and decided to take the jump. As recessions are periods that are in great need, and when times that are adversity can inspire creativity which is why this could be a good opportunity to go off for yourself. These suggestions will help for starting a company in the current economic environment to turn uncertainty into opportunities.
Find the “why”
First, you need to take some time to consider the reasons you’d like to begin an enterprise. You are passionate about a certain item or product? Do you wish to be a positive influence in the world? Maybe you’re willing to become your boss following the latest corporate cut. It’s your “why” is extremely important. If it’s not sufficient and compelling, you’ll not be able to endure the storms and downs of being an entrepreneur. Once you’ve identified the “why,” you can begin identifying the pain points of your customers and setting objectives for your company.
Create a need on the market
Consumer behavior has drastically changed over the last year, so you need to consider what your service or product is a part of the new lifestyle that is a result of the pandemic. The examples of industries that have been thriving in the outbreak include delivery and cleaning services fitness equipment for home improvement, as well as behavioral health to name a few. Additionally, the epidemic has also seen an increase in the pet industry with the ASPCA having a 70 percent increase in the number of animals being sent to foster care as compared to the same time in the previous time, as per Matt Bershadker, ASPCA president and CEO. Find out what people need in the present and then strive to fulfill the gap.
The focus is on the digital marketing
A solid digital marketing strategy can increase the success of your new venture in these difficult times. In a time when you have limited chances to interact with customers and clients in person, you should focus on effectively interacting with customers via websites. Anna-Vija Mclain, founder, and CEO of Piccolo Marketing recommends keeping in touch with your customers and demonstrating empathy in your communications. “Ask how they are, and truly listen to the answer, McClain suggests. Where are they trying, and how have their problems increased? Your messaging lacks to explain you are in it commonly for the great haul, and your behavior needs to back that up. Making your digital marketing more efficient and making engaging communication an ongoing practice helps customers to locate your company when they search for solutions you can offer.
Employ your system
This is the perfect time to make use of your professional and personal networks to spread the word out. Create your ideas. Make use of social media like Twitter, Facebook, Linked In, Instagram, and others to the maximum. Contact your contacts to find out who is interested in pre-ordering your item. This can provide you with useful initial feedback about pricing and demand. Set up informal “focus groups” consisting of your targeted audience to assess their requirements and concerns. It is also possible to take advantage of online survey tools such as SurveyMonkey to ask for feedback. It is best to test your product in a low-cost, small method that will give you an accurate indication of whether people will want your product and what price they’re willing and able to pay for it.
Make a recession-proof business plan
The ability to adapt your business model to the changing market is crucial. This includes keeping a watch on your expenses to ensure you do not overspend. It is best to try to build a foothold for your business as much as you can. Make sure you have at least six months or one year’s worth of savings in case that you do not see the sales you initially were hoping for. Make use of the abundance of state, local, and federal aid available. Be sure to read every contract between the supplier and vendor and negotiate payment terms to increase the flow of cash. Discussion of concessions with partners can be extremely beneficial at this point. It’s also good to know that the majority of suppliers are willing to be flexible, particularly if they plan to develop a long-term relationship. Another of the most effective methods to protect your business from the recession can be to expand your offerings. Begin small, and then expand your options over time. Also, keep track of ideas for expansion.
While there are certainly some incredible challenges launching any business right now, the opportunity is also ripe to create a new business, said Jeremy Shoykhet who co-founded New York City-based delivery company MoreFast in May.
The number of applications for businesses that are now growing at the fastest pace since 2007 could be the best opportunity to launch a new company. It is an era to discover potential business opportunities that aren’t being investigated and to alter the way you run your business, says Van Goodwin who is the founder and managing director of Van Allen Strategies.
Availability of financial support is at a historical high, as is the availability of labor. Your clients, agents, and co-workers are hungry for new ideas and open to change. Take advantage of that. This is an economically difficult period, but also a once-in-a-lifetime opportunity to reinvent your business.
2021 is an extraordinary, but challenging year in the history of mankind. Make the most of this opportunity to offer products and services that people in the world need today. This could be the most beneficial decision you’ve ever made.