Starting a business during Covid-19: Tips and tricks
Planning to start a business during the pandemic? Find out what you need to bear in mind before you launch.
We are in the middle of one of biggest crises of our generation; one that looks set to cause an economic slump like no other.
However, don’t assume that this means starting a new business is out of the question. On the contrary, recessions always prompt entrepreneurship – and 2020 will be no different.
Of course, there are caveats to this, and you can’t expect an easy ride. But it’s never been easy to start a business – the average rate of business failure by five years is around 50%, pandemic or no pandemic.
Bearing all of this in mind, in this article we’ll look at some of the key considerations if you are planning to start a new business during the current pandemic.
Is your model safe both during and post-Covid?
By this first question, we obviously hope that there will be a post-Covid world very soon…!
It would be fair to say that the world we live in now is significantly different to what it was 12 months ago. Habits have changed and naturally, this impacts businesses.
If you want to start a long-term, successful business, it needs to stand the tests of both the present and future.
For example, while most people might be taking on digital, at-home services now, will this still be the same if we do start to emerge from our lockdown habits in the near future? In other words, if Covid was to eventually go away, would your business be able to survive?
While some companies might be established in a bid to conquer the current demand, others have a longer-term strategy. If yours falls into the former category, ask yourself if this business is going to suit both an existing and post-Covid world.
Take advantage of the ‘new normal’
As the media keep telling us, we’re all living a life of the ‘new normal’. This covers everything from working at home, to not having to travel for external client meetings.
For a new business, this is a huge advantage. The cost savings here are enormous and mean that you don’t have to fork out huge sums of money for rent and travel. Or, if you do need to store some equipment or stock, you can at least use cheaper self-storage options as a temporary solution.
Ignore initial trend data
To say that the global market is unstable is an understatement. Everything is constantly changing right now, and this means businesses are faced with an impossible task of forecasting.
Lockdown measures are coming and going, while unemployment rates are creeping up around the world. Governments are attempting to offset any negative economic effects with various initiatives, but this simply skews trends even more.
Put simply, don’t build your business on current trends. If you notice a huge upturn in the first few months, exercise caution before investing in expansion. As we have seen so much with Covid-19, you can never guess what is around the corner.