Have you always wanted to launch a business? If you’re waiting out the pandemic before moving forward, you’re not alone. It’s true that fewer businesses are started during periods of economic uncertainty, but postponing the launch of your business could mean missing out on certain advantages, including low interest rates, affordable equipment, access to a large pool of talented job seekers, and increased consumer demand for innovation. Some of the most iconic businesses were launched during recessions! As it turns out, the pandemic is a great opportunity for prospective entrepreneurs.
Of course, launching a business in this economic climate can be a little scary. We want to help you overcome any reservations you have about getting started. Keep reading for tips from Oasis Consulting Group to help you make the most of your investment money as you launch your big venture.
Launching a Business is More Affordable
Thanks to the economic downturn, launching a business today is more affordable than in recent years. For example, low interest rates on loans will make it easier for you to purchase business property, acquire equipment, and hire employees. At the same time, consumers are more mindful about supporting small businesses right now, so the pandemic could help you compete with bigger, more established brands.
While it may be more affordable to launch a business during a pandemic, economic uncertainty necessitates careful budgeting and planning. You don’t want to be left scrambling if your loan rates increase. By carefully tracking your business finances, you can effectively manage your cash flow and set aside money for emergencies. With the help of accounting software, you can easily and regularly generate a profit and loss statement without spending too much time on manual entry. In turn, you’ll always have up-to-date details on your revenue, expenses, and profits (or losses) over a specific time period so you can make informed business decisions.
Booming Industries to Explore
It’s clear that the coronavirus crisis has hurt certain industries, like hospitality and tourism, but it has also increased demand for startups in other spaces. From cleaning services to video conferencing tools, the pandemic has helped many niche businesses reach a much wider audience. Think stylish face masks, business sanitization, employee medical screening, zero-contact delivery services, and tools that facilitate remote work. The best part? It’s not too late to get in on these great opportunities.
Opportunities for Innovation
During the past year, innovation has snowballed across several industries. The pandemic has sparked innovation in areas that have never seen so much attention, like at-home fitness, cybersecurity, home-based entertainment, and remote work. Regulations have also changed to encourage social distancing while reducing the impact on consumers and businesses. State liquor laws, for example, have been relaxed to reduce the economic blow on restaurants by allowing alcohol delivery and pickup. Regulatory changes like these are making it easier for businesses to innovate.
Launching in a Downturn Increases Resilience
Another benefit of launching your business during this crisis is that you’ll be well-prepared for adverse economic events that crop up in the future. Businesses that get their start in an economic downturn tend to be more resilient. You will already have experience with budgeting, connecting with cash-strapped consumers, adapting to regulatory changes, and managing your cash flow during periods of loss. Take note of the lessons you learn so you can build up your durability for the long-run.
Although the pandemic might not seem like the best time to start a business, there are many great reasons to move forward with your venture during this difficult time. Businesses that launch now will enjoy some significant long-term growth possibilities, so don’t miss out.
Are you ready to get started but need support running your business? The experts at Oasis Consulting Group can ensure your small business thrives during and after the pandemic.