According to a survey conducted in 2020, 64% of the UK workforce wants to set up a business. In the UK in 2019, there were 5.9 million private sector small and medium sized businesses. Entrepreneurial ambition is never dead, but not everyone end up making the decision to start their own business.Why? Obviously, starting a new business comes with a whole set of risks and challenges, including investment, staffing, success rates, and overheads. And you may think to yourself: the past year 2020 has come with its own share of problems, then why do I want to start a business just after I struggled to live through pandemics and lockdowns?
You know what:
- During the 1957 to 1958 recession, the first Hyatt hotel opened.
- Microsoft was founded during the oil embargo recession of 1973 to 1975.
- The Great Recession from 2007 to 2009 saw the creation of several startups like Uber as well as the popular vacation rental marketplace Airbnb.
Well, actually, you do want to do that because 2021 is the best time to do so. Here’s why:
1. Available workforce is expanded
The pandemic forced millions of people out of their jobs. If those people don’t decide to start their own companies, they’ll be looking to join those who do, putting their experience and expertise where it’s most valued. As you set out to hire for your new business, there will be a larger pool of more experienced workers who are potential employees of your new company. You can hire them to help build your business.
Not only are we helping those in need of financial relief during challenging times, we are connecting those same people with missions and new business ideas that are truly life-changing.
2. E-commerce is booming
More than ever before, consumers are glued to their devices and online consumption is at an all-time high. E-commerce has spiked by nearly 40% in the wake of Covid-19. Consumers now prefer to order in whatever goods or services they can to protect themselves from exposure to the coronavirus. Many offices are closed and more people now work from home than ever before and are making more use of online tools.
Following trends in consumer behavior and purchasing habits and how they have changed will help a lot of new businesses develop this year. If your business can go online in 2021 and focus on solutions to consumer problems, it will be well-positioned to reach its target audience. It’s now become easier and more accessible for everyday people to start businesses such as e-commerce, virtual assistant work, coaching, or becoming a freelance writer, designer or developer.
3.More access to funding
Uncertainties about the future caused a number of investors to pause or withdraw their investments from entrepreneurs early in the pandemic. Of those who kept their assets locked securely for the better part of 2020, many are ready to invest again and get returns on investment. Moreover, as there are fewer entrepreneurs willing to test the waters in 2021, this again means less competition — here, it’s for funds from angel investors. As long as you have a solid strategy in place, getting funding to back up your business may not be as hard as you think it is.
4.Consumers have been waiting for too long
Prospective entrepreneurs may be hesitant to start a new business this year because they feel the customer base will be poor. Well, yes, the world is going through a pandemic that has impacted many individuals’ spending habits. Keep in mind that in any business, the first year is not usually a bed of roses, even if it doesn’t take place during a pandemic. You’d still need to put in the work regardless. However, you may find it easier in 2021 as there are already customers who need your product or services.
The most important thing is to start with brand awareness and steadily build up a strong customer base. Many customers have been displaced, either because the companies they are loyal to shut down or because they have been temporarily closed due to the lockdown. You just need to identify potential leads that need your products and services, build a relationship with them and watch those leads turn into paying customers.
The ripple effects of the events of last year will still be felt for years to come, and it’s normal to feel as though the new year is not an ideal time to start a new business. However, you may already have all the resources you need for your business to succeed, and despite the pandemic, you can start a thriving company in 2021.
Starting a business can be hard, but our support with digital marketing can make things easier for your business!
We offer social media account management, marketing analytics, content creation, prototype design and all kinds of digital marketing services, both reliable and affordable.
Hidden Flare is the chance to take your business to the next level!
Call us on 01216887421 for further information about our service.