Why it's not a bad time to start a business
Why it's not a bad time to start a business
28 October 2020 | Published by Bryony Pearce
If you’ve been sitting on a business idea for some time now, waiting for the right moment to pounce, we wouldn’t blame you for assuming the pandemic of 2020 and it’s financial impact make now an inopportune moment.
Happily, we’re here to tell you that’s not the case, instead, 2020 might well be the perfect time to start a business. Think we’re crazy? Read on to find out why.
Why it’s a good time to start a business
With COVID wreaking havoc on some existing businesses due to the financial ramifications of lockdown, there’s widespread speculation that the UK and in fact the world is heading for another recession.
Surely a recession isn’t the time to be setting up shop we hear you cry, but actually, a recession can be good for startups for four reasons.
1. Necessity drives innovation
The likes of a global pandemic create problems that people need solving, and so the old saying ‘necessity is the mother of invention’ rings especially true in light of COVID.
The virus has created a very precise set of problems that frankly no-one could have anticipated and as a result, startups are scrapping to provide the solution first.
Who would have imagined we’d all be in need of a constant supply of hand sanitiser? Be wearing face masks? Need homeschooling resources? Or be ordering as many takeaways or food deliveries as we are?
There’s been a flurry of creativity and innovation on the back of these novel demands with the likes of gin distilleries adapting their equipment to produce hand gels, and many smaller businesses offering food deliveries to meet the demand the big chains couldn’t.
In a nutshell, startup businesses are flexible and innovative, they can be designed specifically to meet the demands of the moment, and that’s exactly what consumers need and want right now.
2. There are deals to be had
Although it might not make perfect sense, a period of economic uncertainty like we’re experiencing at the moment opens the door to great opportunities for businesses seeking funding.
Why? Because interest rates are super low and that makes borrowing money more affordable. Savvy spenders can bag a bargain during times like these, just as many homeowners have with their mortgage rates, business owners could get more bang for their buck too.
3. The talent market is wide open
It’s not something we like to see but the simple fact is many members of the workforce have been left unemployed as a consequence of the pandemic.
We’re not suggesting anyone revels in this but ultimately it broadens your horizons when looking to pad out your own staffing, whether that be waiters and waitresses, an accountant, a business partner, or whoever you need to meet your goals.
While pre-COVID employment levels were high and it might have been trickier to bag a top-notch employee, the talent pool is now deeper and your startup could benefit.
4. There’s less competition
At takepayments we love nothing more than seeing businesses succeed so this next point is painful, but unfortunately, there are businesses struggling to come back from the effects of the pandemic.
As unpleasant as it is, this makes your life as a startup business owner easier as ultimately there’ll be less competition to contend with. If you can innovate, meet demand, and weather the storm you’ll be at an advantage on the other side.
The proof’s in the pudding
If you’re still sitting on the fence wondering whether now’s the time to get the ball rolling, take a look at these stellar examples of businesses started during a period of recession or financial uncertainty - they did fairly well for themselves…
Microsoft
Microsoft was founded by a little known entrepreneur, Bill Gates, in 1975. He created the company during a period of rising inflation, high unemployment, and lifeless GDP in the USA.
Burger King
Two brothers in Louisianna spotted a gap in the market back in 1950 when America’s economy was struggling following the Korean war. They recognised the need for fast food that was also affordable and the rest is history.
FedEx
In the midst of the infamous depression in the USA between 1969-71 a university student called Fred Smith began working on a project called FedEx. 70 billion dollars in revenue later it’s fair to say the economy didn’t hamper his success.
The best small businesses to start
There’s definitely a trend in the types of business that are starting and succeeding right now, but before we tell you what they are we want to say firstly, this is just a highlight reel of sorts, and secondly, any business that can identify a gap in the market, a consumer demand, and meet that need, can succeed.
It’s all about the ability to ‘read the room’, and that skill likely played a role in the success of startups in the following industries during the pandemic:
- Food delivery
- Courier services
- Deliverable luxuries and gifts
- Online teaching & tutoring
- Online sales businesses on the whole
Notice a trend? Yup, they all meet the demands of the moment - people can’t or are afraid to leave the house to spend their cash and are seeking out an alternative.
The best part is, any business that can startup and be successful during this period of uncertainty is set up to continue down that road once it’s all over with. They’ll have demonstrated their value and built a loyal following who’ll remember their name once things are back to normal.
Ready to rumble?
If we’ve convinced you that now’s the time to dive into the world of business ownership and be your own boss, check out our blog for heaps of useful resources for startups. Here’s a snapshot of what you’ll find:
Our blog’s designed especially with small businesses and startups in mind, and when it comes to making sales and taking payments we offer the cream of the crop in payment systems, including:
- Card machines - countertop, portable, mobile, and A920.
- Payment gateways
- Virtual terminals
- Pay by link
- Order & beepaid
Reach out to our friendly experts today to find out more.
