The past couple of years have put the economy through the ringer. Business have been making cutbacks and even filing for bankruptcy in some cases. The pandemic forcing people indoors for a year meant that no one was out spending money.
Unless you were an established takeout reseraunts with your own delivery drivers then you were going to be struggling. But just as fertile soil comes as a result of volcanic eruption, it is possible to build a successful business out of the nightmare of a recession. We’re going to run through why now a good time is to start a business.
Have any businesses in the past started in a recession?
Whilst on the surface, starting a business during a massive economical downfall may seem like a bad idea, there are a lot of really great opportunities that can come out of economic struggle like this and there are plenty of previous example to show this.
One major example is that os the big global tech megacorp, Microsoft. Bill Gates started up Microsoft in the mid 70’s. At this time in America there was a significant increase in unemployment and rising inflation causing a lot of economical unrest. Through it all, Bill Gates managed to create one of the most profitable companies in the world whilst making him self one of the richest people alive.
Even recently, smaller family-owned businesses like hugoandons.co.uk have found ways to adapt to the pandemic, selling luxury beds across the country in a time where people are spending the most time laying in bed.
What sort of business should I start?
Deciding what you want to center your business around is very important at any point int time, but it is especially important during a recession. Recessions often call for there to be high demand in certain areas of business. This can vary and is usually due to whatever caused the recession in our case. For us, this was the pandemic, so there is currently a demand for new business that are readily adapted to the increased restrictions and lack of face-to-face contact that we are still struggling with.
Online based business is in a very good place at the moment, people aren’t going outside to the Highstreet anymore so moving your business out of a store front and onto a website is absolutely a way to move forward. This also means that people can work from home for the most part, another element of business that many companies are trying to keep up even with reducing restrictions.
Another type of business that is thriving through the pandemic is home delivery services. Companies like UberEats, Deliveroo and Just Eat have been thriving during this pandemic. Now it may be hard to compete directly against these companies but there are gaps in their market. Some smaller towns and villages across the country don’t have access to a lot of these delivery services due to a lack of drivers, you can try and capitalize on the areas that they are unable to cover.
How do I go about it?
Coming up with ideas on how to start a business and what the USP should be is great but how do you actually put that into action? Well let’s take a look at the economic landscape at the moment to figure out what areas you can focus on to help you succeed.
One big area which you can use to your advantage is unemployment rates. So many incredibly proficient and talented are currently without a job. This means hiring people is going to be much easier right now than usually, the bank of talented unemployed it much higher than the average. You might even be able to hire them on a slightly lower salary than they are used to due to the lack of other jobs about right now, saving you money.
Speaking of lack of other jobs, there is much less competition out and about at the moment. This means there is much more room for you to slip into the market either unchallenged or lightly challenged in the fiscal space. You’ll be able to build and thrive quickly as long as you have a unique enough selling point.
Finally, there is a general uptick un innovation right now, there’s completely new spaces in the economy that never had to exist in the past due to the pandemic, use this to your advantage to provide a new innovative service that people need during this trying moment in history and you’ll be making profits within no time.
In the end, starting a business is never easy, you are going to run into many struggles along the way, but if you keep on your toes and stick to your research then you’ll be thriving in no time.