If you’re a budding entrepreneur, it can be disheartening watching news outlets cover stories around pandemic-related business closures. In fact, you might be thinking you’ll have to put your own business plans on the back burner until the economy is booming again. However, according to the U.S. Chamber of Commerce, savvy entrepreneurs might find this to be an opportune time to launch new ventures.
While existing businesses and industries may be struggling because of wavering economic conditions, a down economy can actually serve as a prime opportunity for new startups to gain their footing. Tytn Business Development invites you to consider the following if you’re unsure about taking the leap into entrepreneurship.
Assess The Business Outlook
The COVID-19 pandemic has been a challenge for countless business owners, particularly those in which in-person business is a vital element of operations. Many businesses are thriving, however, including online retailers, health services companies, delivery drivers and other supply chain-type operations. While it might seem counterintuitive to start a business during a slow economy, according to Forbes, it presents a unique opportunity to enter the market. The success of entrepreneurial ventures is often based on timing and preparation, and this is an ideal time to research, plan, conduct market research and look for niche opportunities. If you’re having trouble making a decision, working with a business consultant from Tytn Business Development can help you determine the best path forward.
Pandemic Business Start-Up
While no one wants to see a small operation go out of business, it does present a chance to purchase equipment, buy-out leases, and attend auctions to get inventory at rock-bottom prices. It’s also an ideal time to hire top talent who may have been displaced by their previous employers. Keep in mind, there’s no need to feel opportunistic or like you’re taking advantage of someone else’s hardship. In fact, you’ll be an asset to closing businesses that need to liquidate so they can position themselves for a rebound and new business launch at some point in the future.
Get Your Business Moving
Conduct market research just as you would with any other business startup. The U.S. Small Business Administration says it’s important to understand who your customers are, where they are, and what type of buying power they have at this time. Recognizing business may be slow at first, and you may be dependent on continually changing regulations around business occupancy levels. You might even benefit from a soft launch, which gives you the opportunity to tweak the business model as necessary and then go full-steam when the economy is flourishing. Remember to also use your capital wisely. While this is a great time to take advantage of historically low interest rates, you’ll want to have some cash in reserve to cover unanticipated circumstances.
Educate Yourself
If you’re on the fence about launching your business venture, or you’re still in the planning stages, take this time to further your education, knowledge and understanding of the market you plan to enter. Earning a degree in business, business management, marketing or a related field can significantly improve your odds for success when your business is underway. You can even find a variety of online education programs that fit the bill. In addition to gaining valuable insight and information, you can use your educational connections for networking, both with students, speakers and instructors. Many people who teach business classes are leaders in their industries and can help you gain real-world knowledge, as well as expand your professional ties.
Launching a new business during a slow economy might have some challenges, but it also presents a very unique business opportunity. You might be able to fill a void where services or products are slim or non-nonexistent. You can also negotiate extra-favorable terms when it comes to buying or leasing real estate. Recognize that the market is in a continual state of flux and plan accordingly, but otherwise, look for the ways in which you and your business can make lemonade out of pandemic lemons.
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When the time comes to launch your business, there will be plenty of tasks you need to accomplish. Look to Tytn Business Development to help you along the way. From forming an entity to taxes to bookkeeping to social media marketing and even web design, they’ve got your covered.