This pandemic hasn’t made life easy. Most people right now, they’ve had to face harsh realities such as unemployment or the loss of their savings just to get by. There are many stories out there that share the kinds of changes many have had to go through to adapt and survive due to current events.
However, history has shown that it can also allow you to thrive if you can rise to the occasion. It’s not a well-known fact, but high profile businesses such as Airbnb, Uber, and even Microsoft all rose and built a name for themselves during long and uncertain economic downturns. These companies’ success only proves that certain advantages can give startups a fighting chance in a continually growing market despite troubling times.
Considering to create a startup now may seem intimidating. But recognizing the advantages of starting one at this time and leaning towards them can take you far and benefit you greatly. Here are some key points to consider.
1. We want innovation
Innovation is the key to any business pursuit. That’s why we must recognize problems or hurdles people have and introduce new ideas or concepts that could alleviate them, if not revolutionize how they tackle these things.
The current state of the world has created more challenges for us to try and overcome. But one could interpret these challenges as opportunities for growth and transformation. We can look to other companies like Disney, General Motors, Venmo, and NerdWallet on how they made strides in their respective industries during some of the most unstable historical times.
2. Marketing has never been cheaper
It has been observed that ad price rates have declined over time with the pandemic going on. This makes brand building much more comfortable and cheaper to do. And with the amount of traffic going through the most popular internet platforms, it’s more likely that your business will get on people’s radar soon enough.
However, one thing to consider is that sites such as Facebook or YouTube are saturated with other ads from more prominent companies and have more resources to advertising themselves more efficiently. That’s why it’s essential to research and look for newer platforms that offer cheaper advertisement opportunities. Creating a business plan is an excellent first step in this as it can help you formulate a good strategy and consider options you usually would not think about if you come in unprepared.
The last thing to note is that reviews and word of mouth are always reliable. Networking has proven itself to be consistent in generating business. Referrals help in attracting potential clients and even opens up avenues in expansion with joint ventures and partnerships.
3. More Access to People and Talent
One cannot deny the increase in people looking for jobs and career options right now. This gives businesses access to different possibilities of potential employees and talents that would limit under normal circumstances. It means you’re more likely to land a valuable asset at this time.
Consider looking into taking in international candidates as well. It provides a larger pool to choose from and may even cost cheaper in the long run. Working past the hurdles of hiring employees from other countries may have you reap the rewards in the long term.
4.It give startups negotiating capability
A weakened economy tends to cripple vendors and the way they move their products around, and companies see this as a chance to renegotiate agreements with their suppliers. This is especially beneficial for startups, as they are more important in setting the terms. This is usually not the case under normal circumstances, but current conditions have placed startups in an advantageous position.
Consider your budget, and see if you can make some adjustments with your supplier. You may find yourself in a position that allows for more financial freedom, leading to more returns.
5. Less Competition
Competition is always a significant concern when it comes to the overall business. Entrepreneurs still have to consider how badly they have to compete with other companies. From chasing after consumers to resources, you’re all vying for, dealing with multiple competitors can often be a daunting challenge.
That significantly reduces when there’s a downturn or recession. Suddenly, markets open up, and customer needs arise exponentially. There’s no better time to take this opportunity to introduce solutions and meet increasing demands.
6. More Potential Investors
Concerning the previous point, a sudden surge of investors can be expected. Most of these are angel investors looking to move their funds from the market. One of the things they look for in a startup is providing returns, especially in the long-term.
They may seem picky about it, but if you can prove that your startup can make a big difference not just in the market but also in the world, backers will have no problem supporting your business’s growth despite faltering economies.
One key thing to note is that there may be knowledgeable investors who would like to know more about the investments you need.
7. Building a Stronger Startup
Startups are companies that focus on fast growth and high-end revenue. With this in mind, creating a startup during tough times gives it a kind of character not always found in other companies. It encourages, if not requires, them to be more efficient and adaptable while finding ways to grow and make a big difference in the market.
Keeping this as consistent as possible will reward companies much more when the market recovers, as higher profit margins can be expected when everyone can spend comfortably again. This will allow your business to weather out of almost any storm.
It may seem like a very risky gamble, but starting your own business now can have you reaping a large harvest in the long run. By understanding current consumer needs, you’ll create a startup that can stand out during a crisis. You’ll also be able to make it desirable, efficient, effective, and something that could be considered a necessity to others. This could be the best time to bring yourself up from an employee to your boss.