Starting a Business During the Pandemic: Why You Should Do It

The pandemic has caused significant changes and a lot of upset worldwide. Businesses have closed, people have lost their jobs, and the worst part is that there doesn't seem to be an end in sight. Many people are waiting for the crisis to be over and many have hit the reset button on life, looking for a new adventure. The good news is that a crisis like this is the perfect time to start a business.

Why Now Is Your Time

How often have we heard people saying that this pandemic has also allowed us to evaluate our lives? We may be thinking about and connecting with our values. This leads to us being more truthful about our desires and dreams and makes us more willing to take risks. So if you considered putting a pause on your plans to start a business because of the pandemic, you should do the opposite. The following are reasons why it is best to forward your plans now than wait for “better” times.

Problems Create Opportunities

According to a 2009 study, more than 57 percent of Fortune 500 startups have been founded in a recession or bearish market. If most of these companies started during challenging economic periods, it shows that the present may be an opportune time for starting a business. 

With non-existent legacy expenses, no sudden layoffs, and no bank calling you for the credit line, entrepreneurs who start businesses can now focus on developing a great new product or service. This year, the competition is also feeble, and you can benefit from this for the next few years. Further, interest rates for consumer loans have fallen, creating various opportunities or smart borrowers — you can now, more than ever, get funding to build your business.​

Outstanding Ideas Thrive

Great ideas usually either solve a real issue or make life significantly easier. Think of an outstanding business idea as a painkiller — people need it and are willing to pay. The current crisis has produced and will keep producing numerous issues that will be easily alleviated by such “painkillers,” translating into fantastic business chances. 

Other Businesses Sell Out

Since the pandemic started, essential businesses have risen in value. Still, some startups have been massively impacted financially by the crisis and are now selling their equipment and inventory to recover their investments as much as possible. The equipment may be cheaper, of good quality, and perhaps even brand-new — and you can do something good for the owners by taking it off their hands. 

You Can Invest Wisely

Startup capital is a must when you want to start a business. This budget is needed to pay for office space, licenses, permits, inventory, product development, marketing, manufacturing, and other expenses. You need to use this capital wisely and invest it in things you need, such as equipment, operational costs, employees, business structure, the right technology, excellent services, and so on. Make sure you revisit your budget every few weeks to analyze where you stand to avoid major issues. 

Besides heavily investing in marketing and advertising, an excellent way to use your budget is to choose the right business structure for your project. For a small business owner or COVIDpreneur, the LLC model is ideal as it has advantages such as flexibility, limited liability (meaning, your personal assets will not be affected if your business goes south), tax benefits (like deductions), and very little paperwork. An LLC is also easy to establish with your state - all you need to do is research regulations and file a Certificate of Formation. Also, consider hiring a formation service to do it for you since it's cost-effective and saves you the legwork.

Here's to the Real Entrepreneurs

Starting a business during a pandemic is not a piece of cake, but it is not impossible either. Use the next few years to build your business from the ground. Something great could come out of these hard times yet!

Guest Post was written by Derek Goodman of www.inbizability.com Derek Goodman has been an entrepreneur for 5 years offering tips, tricks, and resources so that you can realize your business ability and potential now, not later.