The coronavirus pandemic is providing the opportunity for workers to contemplate their current business and income situation. Many people have either lost jobs or are experiencing extreme changes in their daily work lives. These changes are forcing them to think about whether they’re happy and fulfilled doing what they do for a living. The answer, for some, is no. These are the people searching for other options, the ones who may be thinking about starting their own business.
But is this a good time to start a new business? It turns out that the answer may be yes. According to an article in Forbes magazine, Uber, Slack, Square, WhatsApp, and Instagram were all started on the back end of the last recession. Times of crisis often present new opportunities as consumer needs evolve outside the status quo. Those who spot these evolving needs and take action to fill them are the ones who may be successful transitioning into small business ownership.
Proceed with Confidence…and a Little Caution
There are a few things to keep in mind, though, when starting a new business, especially in the middle of a pandemic. Consider these scenarios.
Current needs may not exist forever.
Before starting a business, make sure you know your market potential. The current market probably won’t last. Here’s an example: Many consumers are buying groceries online because they don’t feel comfortable going to grocery stores. That doesn’t mean it’s a good time to launch a grocery delivery business. It’s likely that once this pandemic passes, most people will go back to shopping in grocery stores.
If you’re looking for a temporary or part-time business, then satisfying the immediate needs of consumers may be the right choice. But if you’re planning for the long-term, make sure your product or service will transition through the pandemic and remain relevant once the world returns to its new normal.
The “new normal” will be…well, new.
Something else to keep in mind is that as companies resume operations and people get comfortable going back out on the streets, many will do things differently than in the past. Smaller restaurants may decide to stick with only drive-thru and carry-out options, saving money by operating with a smaller staff. Businesses may realize they no longer need high-priced office space because their employees worked from home responsibly and productively during the crisis. Think through your business model and make sure it will make sense in the new world.
It takes money to start a business.
This pandemic may have shown you just how shaky your financial position is. Many workers have been furloughed or let go, proving that no matter how secure you think your employment situation is, it can always change. Regardless of your current income situation, you may still be able to start a new business. There are financial options available to help fledgling entrepreneurs get off to a solid start. The Small Business Administration offers many resources and is a great place to start when you’re ready to get serious about your new enterprise.
Adams Accounting Services Can Also Help
One task that’s best handled sooner than later when starting a new business is setting up accounting practices. Adams Accounting Solutions specializes in helping small businesses get started on the right foot. It’s much easier to track income and expenses if there’s a system already in place. We’ll help with that, and we’ll answer any other questions about starting a new business. Give us a call at 913-888-9100.
