The COVID-19 pandemic has ushered in a high level of uncertainty for both individuals and businesses. Individuals who once thought of starting a business before the pandemic are reconsidering the move, a thought borne out of fear and uncertainty for many, while others out of logical reasoning. Some individuals who had business start up plans are still left wondering if it is possible to start up a new business during this pandemic. Tough times are not new to humanity and new businessess has been started during tough times in the past.
Some business guru’s argue that challenging economic conditions are good times for startup businesses, base on the premise that they are opportunities in challenges if discovered and effectively managed. They are evidence of the possibilty of starting up a business in tough times as some reputable and thriving businesses were established during challenging times. Some businessess that were established during difficult economic times are: Apple, Disney, Enterprise Rent-A-Car, CNN, Exxon Mobil, FedEx, General Electric, Johnson & Johnson, Kraft, Microsoft, Southwest Airlines and more. Several of them were started during the Great Depression, others in the Great Recession and in other economic crunches. And remember, according to Harvard University, some 70-90% of startups fail.
There is no doubt that it might have been more difficult to get sales, obtain financing, move forward, but they did it and some of these companies are still in existence and thriving. These companies learned to play tough and work with fewer assets through the challenges they encontered, which have helped them to continue working with leaner resources as part of their culture.
Its not all gloomy for all Startups today?
Inspite of the pandemic, they is still hope for business start-ups. The Bloomberg Index of Startup Businesses (technology sector) continues to experience a long-term upward trend after the initial obstruction caused by the Covid-19 pandemic. However, the success formula for any business start-up remains the same: which is to understand consumer needs (what people want), and provide it at an affordable price. Business trends have shown that successful entrepreneurs play and pivot through challenges until the business has traction and scales. Then they continue to steadfastly follow the tested and proven recipe for success.
Are you considering starting up a business during this challenging times? Here are some valid reasons to start a new business in less condusive conditions:
- You will be forced to work with scarce resources, learn to be efficient, adaptable, flexible, resourceful, and creative. These are invaluable behaviors that you can retain and effectively utilize during favourable times.
- You will be more aware of avoidable risks and acquire the skill of risk mitigation.
- The likelihood of lesser competition than in a booming economy, which a good investor can capitalize on.
- Certain resources needed for start-up can be acquired for lesser cost during times of economic pressures.
Don’t give up your dream of starting your innovative new business. You can still start and grow your business in this challenging time with the right mindset, determination, grit and right knowledge.