Starting a business can be scary. The last year was a terrible year with lockdowns and the pandemic, so some may hesitate to try out entrepreneurship in 2021. Even so, there are ample opportunities to make money in 2021, and starting your own business could provide a new way of life for you. Experts say there could be many reasons why the best time to start could be in 2021.
Reasons Why 2021 Could Be a Good Year
Yes, there are plenty of reasons to be afraid to start your own business. The federal government is unstable and money could grow tighter. However, most experts also say there isn’t a bad time to start a business either.
A bad economy doesn’t seem to affect the number of upstarts. According to the U.S. Chamber of Commerce, there has been an average of 400,000 businesses starting every year from 2009 through 2016. This followed the economic downturn of 2008.
These companies proved to be highly successful too. More than half of those on the 2009 Fortune 500 were created during a recession or bear market, according to a Kauffman Foundation study.
The decision should consider all kinds of things including:
- Funding for the business
- Family support
- Marketability of the product
- Number of employees needed
- Length of time to launch the business
The United States has many positive things going for those wanting to go into business for themselves. That could make 2021 the right time to have a startup.
Interest rates remain low
The actual interest rate a business owner can get depends on their creditworthiness, their business plan, and previous income listed in tax records. Traditional lenders, like credit unions and banks, typically have annual percentages ranges from 3 percent to 7 percent. Most experts agree that’s as low as most Americans will see for years to come.
Remote working provides new opportunities
The pandemic had a silver lining in that many Americans discovered what gig workers already knew – that remote work was available and thriving. Remote work increased internet technology like Zoom, and access to customers across the globe opens up many new client opportunities for would-be entrepreneurs.
A concentration on health opens up new revenue streams
More people are interested in health these days. The direct impact of COVID-19 has led many to invest in PPE businesses, such as decorative face masks, plastic gloves, hand sanitizer, and other related items.
However, the interest in health and wellness goes beyond raising immune levels and protecting against COVID-19. For instance, the global essential oils market is expected to reach $14.6 billion by 2026 with a growth rate of 9.65 percent between 2019 and 2016. It was 7.03 billion in 2018, according to business reports.
Lots of people looking for jobs
While the job market under President Donald Trump had more jobs than available workers, 2021 is starting out with many people looking for more work and better work. Those offering good pay and a positive working atmosphere will find there are plenty of people willing to become solid employees.
A global market opens up supply chains
Increased interest in communication, better transport options, and improved technologies have opened up global markets for products and new supply chains. Many foreign companies, including those in Israel, India, and various parts of Asia, can produce cheaper products that can also be bulk shipped at a low enough price to accommodate the U.S. market.
There is also a push for more American-made products and those produce incredibly loyal customers who will pay more to know the product is made completely in the United States using American workers. This would provide another excellent niche opportunity.
Warnings to Be Aware Of
There are always cautions when starting a business and those must be considered when thinking about becoming an entrepreneur in 2021. None of these issues are insurmountable, but those who want to succeed must have a plan to overcome them.
The economy is slowing down
Most agree the economy is hitting a pause, which began with the lockdown in 2020 and hasn’t fully recovered. Experts were predicting a recession in 2021 or even before the pandemic struck.
A slow economy doesn’t mean overall fewer sales, but those wishing to start a business need to learn how to ride the wave and make the most of pauses throughout the year with marketing and other strategies.
The last four years saw incredible business deregulation that spurred the economy into substantial growth. That will be coming to an end under the Biden administration as he is reversing every action taken by the former president.
Ways to protect yourself and your business
Keep a good amount of money in savings
One of the key elements to business success is to keep money in savings to cover not only unexpected business costs but also pay your expenses while you build your business. Nothing is more stressful than having bills come due when business is at a lull. Remember, it will take months, possibly years, to build a business so you must plan for your finances during that time.
Keep health insurance
Startups can’t afford to have their health insurance so you need to make plans to keep up with it through the healthcare.gov options or some other option. A health emergency can not only wipe you out financially but can also mean losses in business. That could doom your success if you are unprepared without health insurance.
Pay off debt and maintain good credit
One of the dooming factors of many small businesses is trying to pay debt while building the business. Experts say it’s best to be debt-free so all disposable money can be put toward the business and you worry less about your expenses.
There is no perfect time to start a business. Every year has both advantages and disadvantages of being an entrepreneur. The best success comes with research, some entrepreneur education, a solid business plan, and a determination to see it through the long haul to success.
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