Is It Time To Finally Kickstart Your Business?

‘Strike while the iron is hot’ is a common phrase used in business circles to convey that the right timing can make or break your new start-up. The recent Covid-19 crisis has seen many small businesses around the world, putting up their shutters. Hence, it is easy to generalize that the current climate is simply not ideal for starting up a new business venture.

However, this may not be true. While restricted mobility and government measures have forced some companies to shut down, they have also generated demand in other niche markets. Customers who are cooped up at home actively seek new ways to access products they love and professionals are also constantly trying to find more efficient means of communication. Your new business could potentially ride this wave of change if you consider the following four factors:

1. Is Your Business Currently in Demand?

Dusit/Shutterstock: Balance between demand and supply

With a sharp spike in the number of people working and seeking leisure from home, gaps in the demand-supply chain have been exposed.

Zoom, for example, was a relatively unknown service prior to the pandemic. However, their work-friendly tools allowed them to fill the gap in the video conferencing industry perfectly. Zoom is now an established company catering to the needs of staff and students worldwide.

Similarly, consider whether your business also fills in a missing piece of now completely shuffled-up socioeconomic puzzle. If you realize you could be fulfilling needs that current industry standards have yet to meet, begin taking steps to secure funding.

If, however, you realize that your idea is not one compatible with the way most of your customers are functioning at present, it may be wise to shelve it for a future time.

2. Can Your Business Be Modified to Meet Demands?

sutadimages/Shutterstock: Modifying the business idea

Your original idea may not be ready just yet to take on the consumer market. Still, can the tools, resources, and personnel at your disposal be repurposed to meet a different demand at this time?

For example, companies like Louis Vuitton have cut back on the production of perfumes and instead redirected their resources into manufacturing hand sanitizers—a hot-selling commodity.

If you realize that there is potential for your business to make such a temporary change, discuss it with your investors and partners. You might just be able to turn a profit while your competitors are closing down.

3. Getting The Funding Is Crucial

EtiAmmos/Shutterstock: Fund arrangement

When the global stock markets have crashed, and investments are down in general, funding can become your biggest challenge. However, you need not be discouraged.

Some of the world’s biggest companies, including ‘Disney’ and ‘Google’ were all founded amid deep global recessions. To obtain funding, you need to make a solid case for your investors. Take advantage of the low material costs acquired during this period and emphasize on how your venture will be generating much-needed jobs.

If you do not have much success with investors, look into how your local government can help. Many officials have resources in place for spring boarding small businesses.

4. Assembling a Team

No man is an island, and this applies to businesses as well. To manufacture a product, attract investors and market it to customers, you require a wide variety of skills in the form of graphic designers, programmers, accountants, and more.

Attracting sustainable talent for your business can be tricky at this point in time. Consider offering potential employees equity in your company—an option that will definitely interest them if your company grows.

You could also consider recruiting freelancers via a variety of services available online. If you maintain positive dealings with these people, your professional relationships can be carried on into the long-term once the economy stabilizes.

There are ultimately many factors to be taken into consideration before deciding whether or not to dip your toe into launching a business at current times. At the end of the day, do not feel discouraged if you need to temporarily pull the plug on your idea—even established businesses struggle to evolve and keep up with changing circumstances. Instead, hold onto your enthusiasm for when things change for the better.