I recently posted the question, " Do you have to start a business in times of uncertainty? on my Twitter and have received some interesting replies and actual accounts, most of which I will share below. But one answer remained with me: "There is no certain time to start a business.
It 's true. Starting a new business is one of the most unpredictable and tumultuous adventures you can have, but it also has the potential to be one of the most rewarding and lucrative.
Here, we will exploreIf starting a business in uncertain times is worth it, go over some tips on how to do it right and determine if starting a business in 2021 is in your best interest.
So, should you start a business in times of economic uncertainty?
TL; DR: Yes.
I spoke with a handful of entrepreneurs about their personal experiences with starting businesses in 2020. Their comments are detailed below.
Hufford founded SEO for the Rest of Us as a community dedicated to helping people stop learning (and of art) SEO .
" If chen times have taught us something, it is that our world is further out of our hands than we ever imagined. Multiple sources of income can provide a security and level of freedom that somehow makes things more certain, "Hufford explained.
Hufford learned this when he started his new one. business was stressful, it was also able to bring some certainty and peace to those looking to learn SEO. "It has been a privilege to help others grow their businesses during the pandemic," he said. he shared.
Should everyone start a business in times of uncertainty? Hufford says no. "You shouldn't start a business if you bank on more than yourself " , he said. "Adding this level of stress to your relationship with your partner or children is not something I would advise you to do.
Melissa Pedigo, CPA, founder of A CPA writes
Pedigo is a CPA who writes tax, accounting and financial content exclusively for CPAs, tax accountants and financial advisors - she also nicknamed herself Chief Nerd Officer and Assistant to tax writing.
"If you already know what you want to do and are sure there is a market for your product or service, then starting a business in uncertain times is no different start one at certain times "said Pedigo.
However, she cautions that if you are not sure about the demand for your idea, you should wait for a more stable time where the consequences may be less impactful.
On the other hand, having a certain idea can cancel out the uncertainty of themarket, economy and the world in general.
Plus with a strong support system (like a spouse, friends or business partners ), you are in a better position to start a business in times of uncertainty. "Having a spouse who supports you, both financially and emotionally, is underestimated and underrated to provide the security needed to make big decisions like starting a business," Pedigo explained.
Davidoff and his team allow companies to orchestrate all elements of their sales, marketing and customer success efforts to drive more impact.
"Asking whether one should start a business at uncertain times implies that there is an option to start them at certain times," replied Davidoff. "In my experience, there is no certainty, especially when it comes to starting and running a business.
In f act, Davidoff believes that uncertain or difficult times are, in fact, the best times to start a business - for three reasons:
- Hard times (such as recessions ) have a greater impact on large companies. If you are a new business, you still have plenty of opportunities.
- Businesses and individuals are more likely to actively consider change by period of turbulence that they are in good period.
- Good decision making pays much more profit in difficult and uncertain markets than in good and solid ones. Businesses don't get great when times are good - they get great when times are tough.
"Businesses should start in uncertain times because if they don't were not, they would never be started, "Davidoff said." I believe there are exceptions for who would have to start a business in uncertain times, but that would be the same answer if the times weren't for it. not uncertain - starting a business is not good for everyone. "
Dr. D 'vorah Graeser, CEO and founder of KISSPlatform
Graeser a founded KISSPlatform as competitive intelligence toolkit to help you innovate and validate your ideas to get them to market faster.
Asked about starting a business in times of uncertainty, Graeser said, “Times of crisis offer unique opportunities to take control of your future. [During crisis], only the companies that ventured out to do something new were available when things “calmed down”. "
According to Graeser, the crisis offers a new scenario in which we can be successful while other businesses fail. To achieve this success, she encourages new entrepreneurs to make quick decisions and take risks. "Limitations and constraints make us think better and faster, " she shared.
She agrees that just starting a business in uncertain times is not suitable foreveryone, this can be a smart decision. "[Starting a business] will test you… but I 've worked with many companies who remember uncertain times and are grateful for taking bold action, planning for the future and invest in their businesses. "
Tips for Starting a Business in an Uncertain Economy
Starting a business - no matter the " certain "be times - is easier to say what to do. Here are some practical tips on start a business in uncertain times by entrepreneurs who actually did.
1. Be real with people.
"F ar too many people tried to cover up the realities so many people were facing [in 2020]. More than ever, people have need to feel seen , "Hufford encouraged.
" When times are uncertain, being a rock to others and supporting them outside of your core business is crucial. "
2. Prepare to adapt.
"Prepare for slow business, and be open and willing to adapt [in response, ", shared Emerson Lee, founder of the personal games brand, Raggammufyn .
It started 2020 as freelance writer but added a few extra services throughout the year as needed. "Now I am workingille to designing a new role-play therapy service with a local niche therapy clinic, and I couldn't be happier "said Lee.
3. Follow your expenses and have a plan.
"Keep track of your finances, and I'm not saying this because I'm a CPA " said Pedigo. "In times of uncertainty, you need to know where every dollar is going and make sure you invoice all your work on time. Cash flow becomes more important in times of uncertainty. "
Also, create a business plan to start and grow your business. This will help you stay focused on your goal when the business ends.hoses inevitably become difficult. It will also help you attract investors and financial support when the time is right.
4. Be clear about your audience and their issues.
"Be clear about who your target audience is - and just as clear on the problem as you are will solve better than anyone, "explained Davidoff.
He encourages new business owners to know the answers to these three questions on behalf of their audience:
- Why should I change?
- Why should I change now?
- What should I change with you?
Tamara Sykes, SEO strategist at Next Level Presence agrees. "You have to ask yourself if there is a need that you can solve," she said. "If the need is obvious, go ahead and start the business, because you know the market exists. But if it isn't, starting your business during an uncertain time is not a good idea , especially since it will take longer to gain ground. "
5. Build an audience first.
"Network and build an audience before launch " shared Jack Kitterhing, founder of EatsWP , a company that allows restaurateurs to create digital menus adapted to mobile and accessible by a QR code.
One way to create an audience is to share knowledge for free via blog and on Twitter. "People will follow you, get involved in your story, and could become clients," Kitterhing said.
Podcast Producer Eva Sheie agrees: "Everything you read about starting a business is getting clients before you do anything else, and it 's did I do. I'm currently working from a client waitlist - so I don't have a logo or website. I will be scaling up and hiring later this year… for now, I'm happy just being happy and doing a good job. "
6. Get moving.
"Get move now, " urged Graeser. "Especially during those times when you feeleverything is still - it's your turn to start moving. Crises inevitably end and, if you start moving now, you will be the only one standing while others take a while to get back to work. "
7. Be brave.
Tom Rankin, a freelance writer for WordPress companies , discusses
Megan Sayers, Founder of Make Good Design , also relied on bravery during these times. " We haven't been out of the woods yet, but there is something heartwarming that so many people are in the same boat - it almost gave us permission to fail, which made us more courageous. "
The Truth About Uncertainty
Although uncertain times make it certainly more difficult the starting a business , the truth is, there really isn't a safe or perfect time to do it. new business, assess your life, relationships and a bank account and decide if they are strong enough to ride the waves of entrepreneurship.
If thereIf they are and you're ready to take on the ups and downs of building a business, then there's probably no better time to start.
Take this note from Joe Clarke , a freelance writer who started his business in 2020: " Should people start businesses in times of uncertainty? It depends on the uncertainty . If this is a volatile personal situation, I would say it is probably not a good idea to add more to your plate. is instability in the world, then you are going to wait a long time for the right time to start your business "he said.
" Do what you can to add nets security before starting your business (whether it is to have X months of living expenses saved, a sai pipelineof leads, etc.), but be aware that there are always risks involved.
"But the problem with the risk? The reward usually comes with.
Is 2021 a good year to start a business?
The end of 2020 brought a collective sigh of relief, but is the promise of a new year enough to get started a successful business in 2021? The answer is not that simple.
Due to the complexity of the pandemic, data on 2020 and 2021, outings and company training are still being collected and released. to analyse. But a preliminary report from The Federal Reserve suggests that corporate exits are about a quarter to a third above hi historical levels.
The report also shows that, despite initial predictions of disaster, some industries have had fateies closer (or lower) to historical levels. These include accommodation, food services, arts, entertainment and recreation.
In other words, we expected many more businesses to close. their doors in 2020. But many companies survived the pandemic with fewer exits than initially imagined, as you can see from the data for the first quarter of 2021.
At the same time, another US court report said bankruptcy filings fell by almost 30%. This includes businesses - 21,655 businesses filed for bankruptcy in 2020, which is lowerto 22,780 deposits in 2019.
Image source: US courts
The initial data therefore continues to support those looking to start a new business. The Census Bureau reported that more than 4.4 million new businesses were created in the United States in 2020, a record.
This is a 24% increase compared to 2019 and 51% more than the 2010-2019 average. It is easy toSee this spike in new business applications, which is tracked monthly by the Census Bureau.
Image Source: Census Bureau
The influx of entrepreneurial activity in 2020 has not only set records in the United States. It is also the largest increase of any country in the Organization for Economic Co-operation and Development or the G20 with data available.
Image source: PIIE
Although it is too early to officially declare the end of the pandemic crisis, businesses are slowly rebounding. This is good news for entrepreneurs who started a business during the pandemic - as well as those looking to become their own boss as economies around the world recover.
Before taking the plunge, It is important to determine which industries have been hit the hardest by the pandemic and which is perhaps the most profitable. Retail, restaurant and logistics have suffered significant losses, while finance, construction and e-commerce have barely slowed down.a href="https://www.hebergementwebs.com/url/8198341" rel = "noopener " target = "_ blank " title = " alt = ""> Shopify shared a list of the best small businesses to start in 2021, predicting which health and beauty, subion, and B2B and B2C businesses will be the most successful.
The same goes for 202 1 a good year to start a business? Yes it's possible. Your chosen industry plays a role, as does the amount of additional funding you can get from government and private allocations. But it is clear that the economy is recovering and more people than ever are starting their own businesses.
When is the best time to start a business
Ask any entrepreneur if now is the right time to start a business, and you will likely get similar answers. There is no such thing as a perfect weather. Every business requires dedication, strong leadership, a great product or service and a little luck.
It doesn't matter if you start a business in the spring rebirth or in the middle of winter, but one thing does matter: you.
Kauffman Foundation research revealed that 30% of new entrepreneurs in 2020 were unemployed when they started their business, about double the rate before the pandemic. This entrepreneurial spike may have jumped for a number of reasons.
Some new founders had ideas germinating for a while and took advantage of downtime during containment to create their dream businesses. Others found themselves unemployed and put energy into becoming their own bosses.
If vIf you feel ready to hand in your resignation or turn your side business into a full time business, be sure to spend some time checking out a few key steps and considerations.
Have you researched your product and your target audience?
Almost 50% of small businesses fail within the first five years. This number increases to almost two-thirds in 10 years.
Image source: BLS
There are many reasons why a business fails, but CB Insights has found that 35% of startups fail because they don't 'There is no need of the market. No customer is vying for your product or service.
The solution is to research your target audience before starting a business. consumer behavior, audience demographics and competition.
Is your particular niche needed? If so, test it. Take a client or two to see if your service works for them. If this is a product, offer a small group of your target audience free samples. Be sure to collect feedback - they will tell you whether or not you are going in the right direction.
Do you have the time, energy and resources?
Running your own business can be exhausting. entrepreneurship has been documented at thetimes through research and hundreds of testimonials. So seriously consider whether you have the time, energy, and financial support to be your own boss. This includes how you want to spend your time and how you plan to finance your business.
It makes sense to set a business budget and map our income and expenses. You also need to consider your savings, credit score, network, and capital. Who may be ready to invest in your idea? How much money can you get to launch your product?
When working through these details, remember to keep your sanity in mind. researchers MIT Sloan helped the new founders reduce the stress of starting a new business by managing self-awareness. THEParticipants who created a routine for mental and physical health were more keen to get help and enjoy their well-being.
So before the panic set in , know that it is possible to start a new business without exhausting your health and all your extra free time.
What's your plan?
In business, success rarely comes of immobility. Instead, you need a strategic business plan . It describes how you will implement your ideas and maintain your business over time.
A solid business plan uses research on your competition and target audience. It takes into account competitor offers, pricing models, options, KPIs, delivery, lead times, customer feedback,marketing channels and areas of growth. The goal is to understand where your industry is, where it is heading, and how you can configure your business to be successful in the space.