Innovation has often been referred to as the hallmark of entrepreneurship. Hence, it comes as no surprise that various prominent organizations were born during times of low economic growth and difficulty. To name a few, Airbnb, Uber, Venmo, and Slack were founded during or just after the great recession of 2009 and have grown to become global market leaders in their respective domains.
With COVID-19 the world is facing similar challenges. While these may not be the most optimistic of times, it is the perfect moment for entrepreneurs with innovative ideas to create businesses that can flourish in the years to come.
Let’s look at some reasons why now is the best time to turn your business dreams into reality:
Easier Access to Talent
The news of downsizing among organizations has been a constant during the pandemic. However, this has led to a surge in experts offering their services as freelancers online. According to research, more than 55 million people across the United States now work as freelancers. These include digital marketers, product managers, graphic designers, business consultants, finance professionals, lawyers, and more.
As an entrepreneur, you now have access to a pool of talent whose quality is much higher than before. Additionally, the cost of hiring freelancers is just a fraction of a full-time employee as you do not need to pay benefits, 401(k) contributions, etc.
According to research, 1 in 4 workers in the US is currently working remotely, which is expected to grow further in the coming years. With the pandemic, workers have become accustomed to working remotely, making having an office or even renting a shared office space redundant. Not having to invest in furniture, equipment, insurance, and more office expenses will save you thousands which can be used towards investing in your business and fuel growth plans.
A Shift in Customer Behavior
Ecommerce sales have skyrocketed since the start of the pandemic. Customers are now more open to making purchases online and use websites and social media as active tools to research and buy products. Additionally, as reported by Mckinsey & Company, 40% of customers have switched towards purchasing from brands that provide them more value. Factors such as promotions, discounts, and ease of buying were other prominent reasons.
By catering to this reformed customer behavior, your business can outperform competitors and even pull business away from existing players in the market.
To thrive in a pandemic market as a new business, it is important to utilize your capital and resources efficiently and effectively. Here are a few ways you can do just that:
- Emphasize Planning: Create a strong business plan and accurate financial predictions for at least three years. These documents will give you a concrete direction to follow and serve as a guide for allocating funds to essential activities.
- Create an LLC: A Limited Liability Company will establish your business as a separate legal entity, allowing you to protect your personal finances and assets from lawsuits. If you are based out of Connecticut, you will have to file for a Connecticut LLC and similarly for any other state. By using a formation service, you can significantly reduce the cost of filing, and time to process paperwork, and gain insights on reducing business costs using eligible tax benefits.
- Conduct Extensive Market Research: Above we’ve discussed a few factors regarding overall customer behavior. Before you start selling, it’s important to understand customers in your niche, analyze competitor strategies and learn about current and future market trends.
- Invest in Customer Experience: Make consumers the center of your business. Based on your research, create product features that resonate with customer demands, market your products heavily on digital platforms your customers use and provide exceptional customer service right from first contact to post-sales.
The pandemic has created a unique space for new businesses to enter the market. By taking advantage of shifting consumer trends and creating a strong online presence, your business can not only thrive during the pandemic but can grow tremendously in years to come.
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