With the Coronavirus Pandemic upending most aspects of daily life, now may not seem like the best time to start a new business, but for enterprising entrepreneurs the timing is actually perfect. In fact, some of the greatest American companies were born during a crisis. The Great Depression gave us Disney, World War II saw the emergence of General Motors, and, more recently, Airbnb survived the 2008 global financial crisis.
The unconventional truth is that a crisis, or recession, often presents aspiring entrepreneurs with a very unique window of opportunity.
Why Now IS a Good Time to Start a Business
Not only are the costs to enter the market lower during an economic downturn, but new customer needs often surface during a crisis, paving the way for new solutions.
Consumers are not always receptive to change or new ideas, and many entrepreneurs experience this resistance when trying to enter a market. However, after a crisis, change is not only desired, it’s often expected and needed.
As new needs arise, smart entrepreneurs have the opportunity to step in and fill the gaps. In the case of the coronavirus, that could mean starting a business offering cleaning and sanitizing services, mask-making, food delivery, video conferencing tools, 3D printing medical supplies and much more.
We’re not saying you won’t make mistakes or encounter obstacles. In fact, when you’re starting a new business, missteps are just part of the process.
The difference is that, during and after a crisis, everyone is trying to find their way through the new normal together. People tend to be more forgiving, which means startups tend to suffer far less market setbacks when mistakes are inevitably made.
Why start a travel company amid coronavirus travel restrictions? Because no else is doing it. In a recession, you aren’t competing for market share, and when things bounce back, your company will be ready.
Even if you opt for a business model that meets a current need, there simply won’t be as much competition for resources like venture funding, office space and employees. In fact, this is a great time to attract and collaborate with top-quality talent that might otherwise be out of reach.
Everything is Cheaper
Literally everything, from the cost of marketing to labor, is lower during an economic downturn. It’s not uncommon to find better lease rates on office space, as well as commercial space, and deals on furniture, equipment, and fixtures, as businesses look to liquidate and sell off inventory. Even the cost of great talent drops during a recession.
Plus, borrowing startup capital is more affordable, thanks to the interest rate cuts made by the U.S. Federal Reserve. Not to mention the stimulus packages introduced to support small business.
Are You Ready to Start a Business?
No matter when you decide to start a business, it won’t be easy. However, the current pandemic shouldn’t hinder you. In fact, it should give you an advantage.
If you’re business plans include leasing new office space, the Lakeside Park has a variety of office spaces for rent just outside Boston. Contact us to arrange for a tour, or call (781) 557-5555 to learn more.
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