Do you want to open a business? Don’t let the current recession stop you. Here are 7 tips to launch your post-coronavirus business (and succeed)
An economic crisis alarms millions of companies. There is always talk of the drop in turnover, often of layoffs and liquidity support, but no one remembers the new entrepreneurs, those who in all this chaos still intend to open a business from scratch.
In the post coronavirus phase we are going through, many have had to give up the idea of setting up their own business. First the lockdown, now the uncertain future: the conditions for doing business and launching a new profitable business just don’t seem to exist. But is it really so? Not entirely.
The latest financial crash of 2008 brought many people to their knees, in the United States and Europe, but it also created the conditions for someone to emerge . For example, has emerged as a cheaper alternative to hotels or short-term rentals, becoming a billion dollar business in 2011.
In short: opening a business after the coronavirus will be complicated, but if your idea has potential and you have what it takes to be an entrepreneur, this time of crisis could be fertile ground to sow your seeds. Here are some useful tips for starting your own business in the time of COVID-19 .
Find your niche
In times of recession, various innovative activities take shape, which does not necessarily mean highly technological. You can start a company even without too much money or skills: just find the right niche to satisfy .
Economic crises always leave aftermath, create new needs, emphasize the problems that have never been solved. Take that of the coronavirus we are facing: the masks market until December was completely snubbed, today it is worth millions.
COVID-19 has created new market trends to invest in. Today you can open a sanitation business and earn much more than in the past, create hand or special protective masks, provide plexiglass protections for offices and companies.
Not just health: education, mobility and free time are also facing radical changes after coronavirus Do you have an idea to intercept a unique niche of its kind? Can you adapt the business you had in mind before the crisis to this new scenario?
In general, the rule for starting your own business in times of crisis is to look at the outside world in its entirety and think about its changes. If you still have an employee contract, talk to your colleagues about it, ask your family for an opinion on today’s problems and how they can be addressed. Get informed in the news or in authoritative newspapers.
Imagine the potential solutions you can offer by opening your business. Crises upset the socio-economic status quo, erase old market niches and create new ones , move the ground and how the passage of a plow can make it more fertile.
Do you have the profile to be an entrepreneur?
Before starting a business in times of recession like these, take a look in the mirror. Ask yourself honestly: am I in the right place? Do I have what it takes to be the boss? Becoming an entrepreneur is not just about setting your own hours or having employees, especially at a time like this.
A true leader must have specific characteristics, including:
- Ability to solve the problems of today and tomorrow;
- Creativity and open-mindedness , to see opportunities where others cannot;
- Relational and communicative skills with customers, suppliers, investors and employees;
- Spirit of self – denial and sacrifice .
Make a critical analysis, also asking for an opinion from those who really know you. The current crisis is a good test case: how are you dealing with it? What is your state of mind and what countermeasures have you taken to adapt to the conditions of the recession?
Furthermore, starting your own business means taking risks : are you willing to quit your full-time job and change your life? You could turn around, but keep in mind that your business might not take off and end up being a victim of the economic crisis.
If you don’t have an entrepreneur profile it’s not a drama, you have to be good at it. You can always keep your usual job, look for an employee contract, or take on one of these jobs from home .
Are you out of money? Think before opening
Look at your wallet and think carefully: opening a business with no money in a time of economic crisis can be a big risk. Convincing investors to believe in your project is complicated, doing it in a time of recession is even more complicated.
Many banks offer concessions at advantageous rates (there are good opportunities for young people and entrepreneurs ), but you can’t just rely on someone else’s capital. Analyze in detail what amount you need and evaluate how much money you can pay to open the business.
If you have a large sum aside and do not want to risk it completely, try to ask for a traditional loan or finance your innovative project through some crowdfunding channel . On the other hand, if your savings are low or you are currently unemployed, then taking a step back might be wiser.
As a last resort, you could ask for money to open the business to some friends, family members, or hire an acquaintance and enter a company. In any case, you will still have to contribute a sum: you cannot ask too expensive efforts from loved ones, an economic crisis is a difficult time for everyone (entrepreneurs and not).
Create online interaction and interest
In a period of crisis, people are less likely to buy unfamiliar products: they decide well how to shop and who to leave their money with. In addition, the coronavirus emergency has relegated millions of families to their homes: no one has been able to go shopping, and it will take some time for things to return to the way they were before.
If you want to open a business from scratch today you have to make yourself known by creating interaction with your online audience. Young people and adults spend the whole day connected to their devices, looking for an answer to their needs or simply for recreation. Build a strong online presence for your business, like a website or social media profile.
For example, if you choose to open a street food or hairdresser business , Instagram can push your product and arouse interest. Facebook on the other hand can create debate or even help you sell (if you start a craft business ). Use TikTok instead to reach very young consumers.
A corporate website is the old paper business card. You can set up an e-commerce section and sell online , or tell who you are and what is the added value of the new business idea. Building a good online presence can help your small business overcome initial hurdles and build a first customer base , which is essential for getting in gear.
Reap the benefits of the recession
In times of economic recession, the state and many private companies offer concessions to support new businesses. Get informed and try to tap into it with both hands. For example: are you a woman entrepreneur and want to open your own business? You can get non -repayable contributions , concessions for your SME in pink and microcredit to be repaid at a subsidized rate.
You will need the right tools to launch your business. In times of crisis, various service providers for innovative businesses or startups offer free trials, significant discounts and other advantageous promotions . Look for companies willing to help you and take the advantage they offer you.
Another benefit of an economic downturn could be a wider range of talent available . Many large companies are in trouble, and have had to cut their younger staff to save their balance sheets. The pandemic may have released highly skilled resources to join your team.
Furthermore, a crisis can shape an entire category of companies and help them push on the accelerator. Cryptocurrency companies, for example, had their best time when confidence in banks was at its lowest, right during a recession.
Offering alternative solutions at a time when traditional schemes have broken down can give you a very important advantage that you would not have received in better times.
In times of crisis like these it is important to start off on the right foot and to minimize business expenses . Cut everything that is not essential: workspace, travel, even your salary if necessary (ask for the bare essentials for livelihood).
Carefully evaluate the human resources you need : only hire employees without whom your work or relationship with customers would be compromised. Don’t be afraid to deal with your suppliers : agree on payments, come to a win-win agreement (we are all in difficult economic times).
Rearranging your monthly outgoings not only serves to overcome the crisis, but also to proceed more efficiently once the negative phase has passed.
Crises don’t last forever
When you find yourself in a difficult moment, it’s easy to get discouraged. However, you often forget that a crisis is a temporary event (albeit a long one), not the norm.
Opening a business in a recession like this is complicated, but once you’ve overcome the obstacle, you’ll have acquired a resilience that will leave its mark on your experience as an entrepreneur, your employees and customers.
Many well-established societies are communicating trust, hope and empathy. They are putting themselves on the same side as their client , as if overcoming the company’s crisis depended on joining forces.
Launch a business and commit to transmitting positivity : you are an entrepreneur who believes in what he does, in people and in the recovery of the economy. A courageous company with an eye to the future is a business in which customers will put their trust.
Open a business in times of crisis – Frequently Asked Questions
Is opening a business at the time of COVID 19 possible?
Economic crises are a delicate phase for everyone, but in some cases they can create glimmers to be grasped. Do you have a great idea? Read these 7 tips for starting your business from scratch (even in the days of the coronavirus).
How to open a business without money?
In a recession, having no money and opening a business can be complicated, but not impossible. We talked about it extensively in this guide: read our analysis.
Can you open a business abroad with the coronavirus?
Setting up your own business abroad (Switzerland, America, United Kingdom, India) requires serious reasoning, unless you are familiar with the legislation. Coronavirus restrictions limit travel, but if you have contacts and the right idea, you can launch your business even outside United Kingdom. But first read these valuable tips.