Let’s admit it – we’re living in a strange time in history. The Covid-19 crisis has changed our lives in every possible manner.
Businesses, healthcare, education, and many other industries were significantly impacted. Businesses and governments have had to alter the way they work in response to the pandemic.
So what does that mean for entrepreneurs? Especially for those who wish to start a new business these days? Is it worth taking the risk during these challenging times?
As a general observation, there is a boom in new businesses after each global crisis. The 9/11 incident and the 2008 recession are some of the biggest examples.
The current pandemic has also created many opportunities for new businesses and startups. E-Commerce and social media gained immense popularity after 9/11. Similarly, we’ve witnessed a spike in property rental and e-transactions after the Great Recession.
The Impact of Covid-19 on Existing Business Sectors
Many businesses have been forced to shut down during the outbreak to prevent the spread of the virus. This encouraged them to take a leap and avail better opportunities to sustain and grow.
Some of those businesses include:
- Restaurants, bars
- Museums, parks, and other entertainment places
- Gyms, salons, and spas
The Coronavirus outbreak has encouraged these businesses to change their niche. People have found ways to start new businesses during these times.
The Impact of Covid-19 on Startups
Startups across Britain are badly hit by the pandemic. Startups in many European countries are already using job retention schemes to lay hold of staff.
Sadly, we haven’t witnessed any visible support from the British Government to support the startups during this tough time.
According to research, the UK is one of those countries that have announced little or no support for startups.
The OBR has also forecasted the damage that Covid-19 could cause the country. According to the report, the UK economy could contract by a massive 35% in the second quarter of 2020.
The rate of unemployment could hit 10% due to the government’s budget deficit. Startups during this time are among the most vulnerable businesses.
Notably, the startup rescue package of over £1bn was announced back in April 2020. According to Aaron Archer, a partner at the law company Cooley, this package will be a lifeline for many UK startups. But rescue packages like this one will do little to stop a broader investment shutdown.
While all of these factors add to the element of uncertainty, it’s not all bad news. If you’re a startup or planning to start your own business in the coming days, you can take a hint from this post to get started.
Starting a New Business during Covid-19
As it is pretty evident that the coming days will witness the rise of E-Commerce. This gives a wonderful opportunity to start your business online.
Below, we’ve put together a list of business ideas you can start immediately. Also, we’ll highlight some tips that could help you cope with the present-day challenges as a startup.
Business Ideas to Start During Covid-19
You can start your online consultancy business if you have relevant skills. For instance, if you’re a photographer or a makeup artist, you can provide your paid services online without making any hefty initial investment.
You can virtually connect with your customers using any video conferencing app. To set up your online consultancy, all you need to have is a reliable online platform. And you’re good to go.
Online Tutoring Classes
The education sector has massively affected due to the crisis. More than 1.716 billion students have been impacted due to the pandemic.
If you have a teaching background, you can start online tutoring classes. Online teachers are in great demand these days. Also, you don’t have to make a huge investment. Simply, prepare some online study material that could catch the attention of your target audience.
There are many freelancing platforms where you can set up your account. The purpose of these websites is to connect you with potential employers who’re interested in your skillset.
Hyperlocal Delivery Business
Currently, customers are preferring online and cashless shopping experiences. Many of the existing restaurants and takeaways have already started their online delivery service. You can also start your doorstep delivery service for groceries, cosmetics, and everyday essential items.
Tips for Startups
It’s important to remain transparent about your affairs. Whether you’re dealing with investors or your target audience, make sure you show utmost professionalism.
Don’t ever try to take undue advantage of the situation. Your products and services should provide maximum value for money to your customers.
Keep Enough Cash in Hand
Let’s be honest! Startups don’t usually die because of a lack of ideas. They fail because they run out of cash.
As a startup, you should initially have at least 1 year of cash on hand. With this money, you would be able to cope with the post-COVID-19 financial challenges.
Reduce Your Expenses
In a pandemic, reduce everything you don’t need. If you’re drawing a salary, take only the minimum amount for subsistence.
Talk to your employees and suppliers and refresh contacts if need be. The only thing important for your business currently is to retain your customers. So, make sure you make every possible effort to generate new leads while retaining the existing ones.
Look for Low-Investment Markets
As discussed above, you should look for low-investment markets during the crisis. We’ve already discussed a few options above. Try to find solutions that are less hard-hit and more rewarding.
We know this is a difficult decision to make. But for startups, survival must be your only consideration during this time. Cut all unnecessary contract clauses, including travel benefits and other fringe benefits.
Stick to the workforce you believe is most crucial for your business. However, make sure you have effective marketing strategies in place. Also, you’ll need staff that could help you promote your products during this time.
Customer service is another important department that needs your attention. You must have a knowledgeable and friendly support team that could satisfy your customers.
Last but not least, plan smartly. Emerging from the crisis will be a slow process. And for your business survival, you have to devise strategies now.
There is no denying the fact that we all are facing downturns in one form or the other. As with almost all things in life, this too will pass. But keeping yourself motivated and progressive can help in combating this crisis.
It’s too soon to predict what the country and market will look like in the future. At this time, it’s best to opt for daily flow management. Also, keep your expenses minimal. Remember, the decisions you make today will have a long-lasting impact on the future of your business.
Hope this is helpful. Drop your comments and suggestions below as we’d love to know about your feedback.
Good Luck and Stay Safe…