2020 has proven itself to be quite a disaster thus far and we’re just halfway through the year. With most folks scrambling to just survive and get through the year, starting a new business is likely to be the last thing on anyone’s mind.
However, fortune favors the bold, and in a time of great economic uncertainty, a savvy entrepreneur with the drive to succeed can carve out a niche for himself/herself. Contrary to popular belief, some of the world’s most successful businesses managed to establish themselves during some of the worst financial crises.
And now with the COVID-19 pandemic raging and thousands of businesses – from SMEs to MNCs calling it quits, the stage is set for a new generation of businesses to take their place amongst the greats.
To help you get started, here are some of the reasons why 2020 could be the year for you to get your business off the ground.
There’s Less Competition
The bane of any business is competition – the less competition you have, the higher your chances of success. Now in the midst of a global pandemic and economic depression, you won’t have to worry about moving against a team of well-funded competitors.
Most of the time, any potential rivals will be more worried about liquidity, layoffs, and survival. This allows a budding business owner to focus on offering a product or service that is better suited to a post-pandemic economy.
You’ll Have Better Access to Talent
In the past, new business owners often found themselves on the losing end in the war for talent. Larger competitors with endless budgets would effortlessly snap up the most skilled candidates for themselves leaving smaller businesses with a much smaller talent pool.
The COVID-19 pandemic however has leveled the playing field as employers all over the world have been forced to lay off record numbers of employees.
As the cost of hiring top talent will naturally decrease in response to this, now is the perfect opportunity to take on elite level employees who will be able to help your business develop a better product or service. It’s like picking free agent horses and turning them into Kentucky Derby contenders.
Financing is More Accessible
While the prospect of taking on debt during a recession may seem crazy to some, there is a method to this madness. During an economic crisis, governments will naturally look towards encouraging economic activity in order to spur growth and create jobs. Incentives such as tax breaks, lower interest rates, and generous repayment terms will be readily available to anyone looking to start a business.
Hence if you’ve been struggling to get your burgeoning enterprise to a start, now may be the perfect time to give your local bank or government office a call.
Time to Expand
Not all businesses have suffered in the wake of everything 2020 has thrown at us. The food business in particular those related to food delivery have seen a massive increase in business as people have been forced to lock themselves in.
If you’re fortunate enough to be in a cash positive business, now would be the perfect time to expand your reach. During the Great Depression, General Motors used the uncertain economic climate to their advantage and worked to buy out their competitors thus laying the foundations of an automotive empire.
You can take a leaf out of their book by using the economic slowdown to snap up assets being liquidated by businesses looking to minimize their costs.
It is highly likely that things will not return to the way that they once were. While stepping out on your own can be scary prospect, there is no better time than now to make your move.