Starting a business is a rewarding investment. You also get to be your own boss. Starting a venture, however, requires careful research and planning to make sure that you get the most of your capital. Apart from deciding on the products or services that you want to provide to consumers, you also have to consider the timing. Is it smart to open a business in 2020?
The world is facing the COVID-19 pandemic, which has affected people’s lives and their communities. Governments around the world encourage people to stay home to prevent the spread of the virus. This crisis has caused a huge impact on businesses, particularly the small ones.
The hospitality industry, for example, has thousands of closures globally. Data from OpenTable show that sit-down traffic in restaurants in the U.S. dropped 83 percent from last year. Despite the challenges the pandemic brings to the economy, don’t feel discouraged to pursue your dream of becoming an entrepreneur.
Starting a Business in Trying Times
As an aspiring entrepreneur, you can either build your business from scratch or join a franchise venture. The former is a lot more challenging than the latter because you have to do everything on your own, from creating your business model to marketing your brand. Meanwhile, investing in a franchise gives you a head start because the business already has a proven model. You will just have to monitor the franchise development.
Forbes explains that economic downturns offer certain advantages to startups. Greater constraints on financial resources of investors during a downturn gives you a higher chance of success. Your venture should be able to self-fund or generate revenue from your customers.
As many businesses shut down because of the pandemic, the unemployment rate in the U.S. increases. You can use this opportunity to explore the talent pool. Forbes says that new hires in a depressed economy are likely to accept below-market salaries. You’ll also find big company refugees who can contribute to growing your startup during these times.
Business Opportunities to Consider in 2020
Consider several factors before starting a business, such as its potential to profit, resilience in uncertain economic times, and the amount of capital needed. Here are three business ideas you might consider:
Buying a Franchise
Investing in a franchise increases your chance of success. It comes with the tools you need to keep your business afloat, such as business systems, branding, contracts, and support. You wouldn’t need to spend years to learn how you can operate your business effectively.
Starting an Online Brand
This involves growing your following on social media platforms, a YouTube channel, or email lists. Your followers would expect content that’s educational or entertaining. You can also use this opportunity to monetize by selling related products and advertising to your followers.
Offering Landscaping Services
A landscaping business is relatively easy to start with minimal cost. It’s also in demand. You need to invest in your equipment, insurance, licenses, and marketing. Research on the neighborhoods that you can serve, and identify the service they need.
Harvard Business Review recommends not to quit your day job when you start your venture. This allows you to maintain a source of income as you develop your brand. It also helps you fund your professional development that you may need in growing your business.
Opening a business comes with huge challenges. You need to find opportunities that can help you reach your goals. Building a strong relationship with your customers is also essential when running a business during these trying times.