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Should You Launch a Startup During a Pandemic?

Launch a Startup During a Pandemic

Funding is difficult to obtain, the world is in upheaval and nothing makes sense. On the surface, the middle of a global health crisis might feel like the absolute worst time to launch a startup. Scratch the surface, though, and you may be surprised by the number of compelling reasons for blazing your own path right now.

Whether you’re in the middle of an unexpected furlough with more time on your hands than you went into the year expecting or you’re working for someone else, this can be a great time to start a business. The trick is understanding your target demographic and finding a way to meet the vast amount of need created by current events. Position yourself properly in the right market, and you could come out on the other side of this pandemic in a better spot than you began.

The Ups (and Downs) Of Launching a Startup in the Age of COVID-19

Even during periods of economic stability, launching a startup can feel like a gamble. With a volatile market and a high unemployment rate, it can feel extra risky. The truth is, many widely-used and lucrative services came out of the uncertainty of the last financial crisis. Uber, Venmo, Slack, WhatsApp and a host of other digital startups found their footing during a recession. The financial climate may seem unwelcoming to new business ventures, but there is room to thrive during an economic downturn.

Right now, you may have more time on your hands than ever before. What better way to make the most of this time than investing it in yourself? The security of a steady paycheck signed by someone willing to take the risk of starting a business is appealing, but the pandemic has proven that jobs can be lost with little to no warning. Launching now means you’re able to take full advantage of time which could have otherwise been spent in fear, waiting for someone else to make decisions about your job security. High unemployment rates mean you have access to a wider talent pool than you might in other times, as well. 

Low interest rates mean that if you are able to secure financing for your startup, money will be cheaper to access. Establishing yourself as a solution to pressing needs created by this unprecedented event doesn’t have to mean you become obsolete on the other side of the pandemic, either. People are loath to give up habits, goods and services that simplify their life, even when their circumstances change. If your startup addresses old problems the health crisis has accentuated, for example, it has the potential to be lucrative in the long term.

On the downside, you may have to work harder to obtain funding during a time of market instability. Reaching profitability takes time, even with the best-planned ventures; do you have the capital to sustain yourself and your new business until you turn a profit? With some creative problem-solving, however, these drawbacks can be addressed.

Getting Your Business Started

From establishing an online presence, which is crucial as the world turns to the internet for everything from socialization to working from home, is the first step after isolating your target audience. When you know what you plan to offer and how, you can even outsource social media marketing so you have more time to focus on what you do best: turning your dreams into a reality. 

Posted on August 5th, 2020 by Client Advocate Team

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