The COVID-19 pandemic has introduced a conspicuous new normal of the work-from-home culture worldwide. It might sound like a bad idea to start a new business during this time with the economic recession and companies taking a hit. But you can flourish with the right mindset and a clear idea of how you’re going to leverage the situation to your advantage.
For any new business, customers’ expectations are the most crucial factor, and it’s not any different now. Here are some tips on getting started with a new business during a pandemic.
Why starting a business now can be a good idea
The idea of starting your business may sound like a challenge best avoided right now in the current climate. But statistics suggest otherwise:
- Recessions mean nothing – Several unicorns today were born amidst recessions. Take Uber, or Airbnb. Or even WhatsApp – all started in the house bubble crash of 2008!
- An abundance of time – An uncomfortably large proportion of people spent their day in commutes before COVID. The time spent on the commute pre-COVID can be utilised in much better ways now as people work from their homes. According to the 2012 Global Entrepreneurship Monitor report, 69% of American entrepreneurs started their businesses from home. Learning new skills required to build your business, spending time brainstorming to grow and improve your new business, are some of the many things you can productively utilise the extra time in hand by.
- High demand for new businesses – The pandemic has people gravitating towards original and more relevant business sectors, while conservative enterprises are taking a hit. Since the needs are entirely different now, there is a high demand for newer startups working to meet those needs.
What to Keep in Mind Before You Start a New Business
While this may be an opportune time to start your own business, don’t put all of your eggs in one basket. Money management and prudent accounting are crucial. Let’s look at some tips that will help your new business cut down on costs and save some extra money wherever possible.
1. Don’t compromise on quality
This may seem counterintuitive, as most high-quality products are comparatively more expensive than the cheaper varieties. However, because of the inferior quality of such equipment, you may end up replacing them more often, ultimately losing more money than you’d have otherwise.
2. Go Wholesale / Annual Subscription Plans
When purchasing for office supplies, or any goods that you may require for regular usage, it is advisable that you order them in bulk from wholesale vendors to get them at a lower price per unit. This will result in a higher one-time payment; instead of smaller amounts of money over time, ultimately increasing your business expenditure.
If you are looking to avail some services, either online or offline, you should look for annual subscription plans, which tend to be much cheaper; examples of such services include web hosting, maintenance, accounting software, etc.
3. Go Digital
The time for traditional ways of doing things is coming to an end. Going digital is one surefire way for your new business to save costs, to ensure that your business doesn’t expend more in transitioning to an online platform later.
Going digital means taking your business online and creating a web presence. It also means that you avail services from the internet. For instance, traditional brick and mortar services like banks are cost-ineffective when compared to neo banks like Salt. This is more so the case for small businesses, as explained in detail here. Covid has certainly changed the fintech world.
Ideas For Starting A Business During COVID
If you unsure which sector you want to begin your entrepreneurial journey with, here are some ideas worthy of your attention, the demand for which seems to be fairly alluring in the near future.
- Edutech has seen a rapid increase in demand, education being one of those services that the market would be unlikely to skip for too long. Online tutoring or crowd learning platforms are great ideas worth exploring.
- Health & Wellness is another obvious choice in the COVID era, as the market decides to keep a keen eye on health and fitness, both due to the general paranoia and the fact that we’re all largely staying at home. Even medical supplies and equipment are areas with substantial potential.
- Online Gaming and Streaming have seen a spike in demand, again, as people continue to stay at home for extended periods.
- Digital Marketing is expected to receive a bulk of advertising focus in 2020 and beyond.
There are multiple knowledge sources on the internet that may be critical in your journey of being a successful entrepreneur. Did you know that 26% of entrepreneurs rely on the internet for business advice?
We, at Salt, are happy to share our thoughts. Head over to the Salt blog for more content!
This pandemic has descended us to ground-zero to rekindle our old hobbies and find a new passion. The COVID-19 pandemic is a much-needed refresh button for most of us to get back on track and begin pursuing our passions and make a profitable business out of them.