There is never a perfect timing for starting a business, sometimes, there are but it only stops you from taking the risk. Organizations like General Motors, IBM, and Disney were all founded right before the Great Depression. Facebook, Twitter, and many others also made it through the economic crisis.
Whether anyone starts a company before, during, or after a recession or global pandemic does not necessarily mean one is going to be more successful in the long term. If anything, global crises are what highlight the next pile of problems the world needs to solve to move forward which gives rise to hundreds and thousands of new companies, new markets, and new opportunities.
As we are currently in this global crisis, there are multiple interesting opportunities for entrepreneurs.
Why is pandemic the perfect time to start any business
Employees of the Organizations enjoy the work without long commutes. Without as much of social life, without many of the work that used to keep us busy, some people have potentially more time than they've ever had to invest in getting an idea off the ground.
Here are some reasons why it is the perfect time to start a business.
Business built in the current situation will only be stronger in the future
Nobody has any idea how long this recession will last. However, if one creates a company that is valuable to people in an environment that is full of declining demand and rising unemployment, the idea of the business is only going to be stronger and flourish when the economy starts to improve.
Starting a business means entrepreneurs will be even more frugal with expenses, hiring, and whatever they need to get the company started.
A lot of talented and skilled people are looking for employment
It's not just small businesses that are adversely affected by the pandemic. Even the multinational companies and most heavily funded startups are firing people right now.
Currently, the market is full of talented individuals looking for their next opportunity. As more companies move to remote workforces, this will unfold more opportunities for the right workers to find the right companies. This is a great time to find a co-founder and other teammates and build a category-defined company.
Businesses that start and solve problems in a crisis tend to grow faster
Generally, new consumer startups tend to be at the forefront of where the world is going with a digital focus, heavy content education and differentiation, and convenience, demand and supply focus for their customers. It's no surprise that many of these businesses are suited for the current environment.
But what about companies that aren't so lucky to be benefiting from these changes? Rule number one of entrepreneurship, when things go wrong, you don't just give up. There is no option of quitting. There's no perfect time to start a business. What matters is how motivated you are to begin.
Tips to run a business during the pandemic
Some amazing tips to run and flourish the businesses during the pandemic
Quick to respond
The entrepreneurs should be quick to respond in these times than in normal situations. There are many challenges and problems faced by the businesses and consumer as well. The team should be very flexible, responsive, and understanding about the additional challenges the pandemic adds to what are generally already extremely stressful events for the customers.
Consider the Benefits of working from home
Encourage the team and explain the perks of working from home. The privacy of employees is intact and undisturbed. Also, encourage everyone to enjoy the benefits, maybe work on the balcony for a little, go for a walk during day time, work flexible hours where possible.
Having a remote team during the pandemic, the communication and coordination among the employees have reduced. To increase communication amongst the team, rather than weekly check-ins and teleconference staff meetings, subordinates can check in with each other in some way daily.
A short text, an email, a phone call, whatever it takes and works best. With this, employees can be there for each other as needed, and address needs as they arise, relieving both team member and team stresses.
Always hope for the best and work for it accordingly
Business owners or entrepreneurs need to be the one who comforts and be a leader to give great hope. They must have a steady hand to keep things intact. People tend to allow crisis and hysteria to outpace the business.
The most important thing for new leaders is clear-headedness and accuracy of the emergency. Oftentimes, the cure can be worse than the disease, and CEOs have a responsibility to manage the psyche of people around them and work to gain confidence.
Ask yourself these questions if you want to start a business now:
- Have I identified a new need that customers have as a result of the current crisis?
- Can I serve this need in a way that is substantially better than the current alternatives?
- Am I qualified to solve this customer problem?
- If I don’t have the experience, can I hire others or find a co-founder to help me?
- Do I have the level of funding that is needed for my business to be profitable?
How can you launch a pandemic-era business
Build a wide network and understand what they are looking for.
Be a big relationship person, spend at least five hours per week talking to different people in the same domain of the business maintaining relationships.
One of the things you want to know, as an entrepreneur, is what investors want to see to feel confident investing in the company. Is it about how much revenue you produce? Is it the growth rate of your customers? Different investors look for different things, so it's important to understand and plan what exactly is needed.
Have a long-term plan and strategy to make it through
Deals are still getting signed, but investors want to see that you have a very clear plan for navigating the current environment. Investors want to know:
- How do you plan on executing the business during a pandemic?
- Why would someone buy your product/services and who is the buyer?
- When do you plan to start generating revenue?
- What key metrics are to be measured, and are those strong indicators of business development?
The Bottom Line
Investors are looking for options as to where to put their capital. The stock market is on fire and the interest rates are so low that investing in bonds and things like that won’t yield a high return. So this is the right time to investing in deals and make the right deals for the businesses.