COVID-19 has brought a divide in our timelines. We now refer to events as Pre-COVID and Post-COVID. The new normal is being defined as we proceed. What is this new normal though? We’re entering a world where people’s perspective towards consumerism has changed drastically. Not only in the ways they are able to access goods and services, but also in the way the businesses function to deliver it to them.
The pandemic has come with its own unique set of opportunities for conceptualization and execution of new businesses. Recession and the COVID-19 pandemic are not a barrier but rather a golden opportunity to start your own business. It’s not the time to be intimidated and fearful, but the time to make the most of the opportunity to become an entrepreneur!
The following are the reasons you should consider starting a business during COVID-19.
If you can bootstrap, You can thrive
The need of the hour for every business in a recessional age like that of the COVID-19 pandemic is to have a very strong skeleton of the business, and the knowledge to run a business, bootstrapped. Bootstrapping is a challenging phase for both existing and new entrepreneurial ventures, but as the saying goes, “When life gives you lemons, Make Lemonade!”. Bootstrapping is all about surviving and growing in tough times depending on minimum monetary and human resources.
When you start a business at a recessional age, you are forced to make the most of the available resources. This equips you and your business to lay a strong foundation with fool-proof business policies and a great strategy. For example, hiring people to work for you can be expensive for a new business with limited capital and tighter cash flow. Instead, if you use free business tools for your business, you can save on salaries and stipends whilst easily managing your business without hassle. Bootstrapping is about finding the most innovative way to efficiently use the resources you possess.
Once you are able to thrive as a bootstrapped business, it will become a very easy ride when the economy witnesses correction. You will be able to ride this wave and cash upon it.
Less Expensive Business Models
Unlike the days of brick-and-mortar businesses where everything and everyone was physically present at the business facility, the pandemic has changed the business models of most of the industries permanently.
As mentioned earlier, most physical stores have now created E-Commerce websites in order to be able to reach their customers despite the pandemic. A lot of cloud kitchens have sprouted across the globe since dine-in became a not-so-safe option. Likewise, even the way that the pandemic normalized work from home and remote working, caused businesses to re-consider their operations.
The newer way of working has become highly virtual and less expensive. When employees started working from home, businesses started to reconsider whether their physical presence at the premises is mandatory. This also caused them to re-analyze the requirement for large office spaces, hiring freelancers over permanent employees, and digitizing their business as much as possible. Additionally, due to the pandemic and loss of jobs, a lot of talented human resources are available to hire for an affordable salary.
Shifting to a newer model, the existing and new businesses now do not necessarily require a big space or capital for equipment and other resources in comparison to the Pre-COVID business models.
Best time for Small Innovative Businesses
Recently, many innovative entrepreneurs have identified new opportunities that surfaced during the pandemic. Be it the need for masks and sanitizers, or the process of digitization through E-commerce websites and Digital Media Marketing, there are so many opportunities to start a new business in these fields now. Concepts like cloud kitchen, online workstation and drone deliveries are being looked at with consideration.