It’s clear that the global COVID-19 pandemic has caused a lot of chaos and havoc among the working population. Millions of jobs have been lost, thousands of businesses have been shut down and the future of the economy is looking bleak. But despite these difficult conditions, some companies continue to thrive. Whether it’s adopting safety measures in their stores or switching their customer service focus, there are plenty of businesses that are doing well for themselves despite the difficult conditions. And it’s not just global corporations either. There are actually a surprising number of smaller businesses that are also doing great in terms of profits and growth, even during COVID-19. So this begs the question; is it actually wise to start a new business during the pandemic? Or is it a stupid idea that will waste your time and money because it’s doomed to fail? In this post, we’re going to explore this idea a little more to help you decide if it’s worth investing in your business now or waiting until the pandemic has settled down.
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It’s difficult to get the right funding and find the right businesses to work with
Many businesses have shut down as a result of COVID-19 and banks aren’t willing to lend money if the risk to their investment is too high. If you can offer a fantastic pitch to a lender then you have a good chance of getting the funding needed. However, if there’s even the slightest amount of concern due to the pandemic, then your funding request will likely be rejected. This means you’ll need to find other ways to fund your company, such as from your savings or by crowdfunding.
You’ll also find it difficult to work with other businesses. Many companies have collapsed as a result of COVID-19, so it can be difficult to find another business to work with. You’ll need to find ways to establish a great working relationship. This will help you build trust with other businesses that will strengthen your company and make it easier for you to stay relevant despite COVID-19.
Most businesses can operate entirely on the internet
With a mix of virtual assistant services online and collaborative processes, most businesses can actually operate completely over the internet with no need for a physical office or close interaction. This depends on the products and services you offer. If you’re starting a new business, then you have the opportunity to tweak your services and products to match a post-COVID world.
For example, you can offer your services over the internet, you can dropship products directly to customers, or you could simply send your products from your home storage to each customer. If you’re working as a consultant, then you can provide most of your services over the internet via a program like Zoom or even older one-to-one communication tools like Skype.
Taking advantage of the COVID-19 situation
It’s not recommended to jump on trends because there’s no telling when COVID-19 will end, but it’s possible to build up a business based around the COVID-19 situation itself. For example, some people may establish themselves as COVID-19 experts that can help businesses navigate the difficulties surrounding the pandemic. Others may turn to producing products like custom designer face masks. Some might even buy and sell protective equipment wholesale.
There are lots of unique opportunities that have arisen from COVID-19. However, you’ll need to have some kind of exit strategy or a way to pivot in the future. If you don’t, then you’ll find yourself struggling in the future when COVID-19 (hopefully) disappears. A lot of the processes from COVID-19 will stick around, but it won’t be as prevalent.
Some final words
Starting a new business is always a risk. Depending on your ideas, starting one during a pandemic could be an even riskier move. However, if you’re willing to put a bit of work into the process and invest in ways to make yourself stand out, then it’s entirely possible to start a new business now and be successful. After all, most businesses operate remotely and many companies are starting to realize they can cut costs on things like office rental because most of their workflow is carried out on computers anyway.
In short, it’s only wise to start a new business during the COVID-19 pandemic if you’re willing to adapt to the circumstances instead of trying to use old strategies that no longer work in a post-COVID world.
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