By Brenda Weathers Hargroves
We know that the COVID-19 pandemic caused millions of employees to lose their jobs or, in some cases, choose early retirement. Lately, however, all we hear about is a labor shortage. Just the other day I read about a business that lost approximately one-third of its staff during 2020-2021 and is now struggling to find workers. In addition, the pandemic has also given rise to an explosion of advocacy for increased minimum wages, encouraging employees to either resist returning to reopened positions or quit their jobs.
What are these unemployed people doing? Well, many are venturing into the world of entrepreneurship. The number of small business ventures has increased dramatically as a result of the pandemic. So, I’d like to take some time to discuss business start-up considerations.
First, let’s talk about the advantages of starting a business during a pandemic.
Why now? The pandemic has resulted in a depressed economy which could even be labeled a recession. There are several reasons why this may be the ideal time to consider starting a business.
Filling a need has always been crucial to the success of a new business. The pandemic has created a unique set of needs for specific products and services. It is also encouraging that more funding is becoming available for existing business owners as well as start-ups. Minority business owners, in particular, are seeing an increase in resources for financial, technical and other forms of support. And let’s not forget that interest rates are currently lower than they’ve been in many years – certainly an advantage for those seeking funds to start or expand their business.
The increased labor pool is definitely an advantage if your business is dependent upon hiring workers. There are plenty of people out there who need or want to start working again. Employment by a start-up could also place them in an ideal position for advancement as the business grows.
Competition may not be as great due business bankruptcies or hesitancy to start an undertaking during these volatile economic times. An entrepreneur who demonstrates the sheer nerve, determination and ingenuity to start a business that survives during rough times will likely continue to experience success.
What type of business should you start? After determining a need, it is most important to identify your interests and ability to meet that need. An earlier article of mine can help you consider what type of business venture best suits your personality and skills. Having done this type of assessment from the start will go a long way towards providing the incentive needed to endure hard times and achieving your goals for business success.
You have a limited amount of start-up capital. OK, so you’ve determined your pocket of tools. Now comes the age-old question: How much money do I need to start my business? Start-up capital is a major consideration, especially if you, like many, are working with a minimal amount of available upfront cash.
Let’s consider funding limitations in the situations listed below.
You don’t exactly know what type of business you want to start.
You know the type of business you want to start and want to determine how much initial capital you will need.
The Internet (where else?) provides excellent resources for both situations. If you know the type of business opportunity you plan to pursue you can calculate your start-up cost on the Small Business Association’s website, https://www.sba.gov/business-guide/plan-your-business/calculate-your-startup-costs.
Suppose on the other hand, you’ve completed a personal evaluation, but have not yet nailed down an exact service or product to offer. I recommend Googling “35 small businesses you can start for a grand or less”, by Lindsay Frankel. This article not only explores business ideas and opportunities, it also identifies places when you can start using your craft and advises when and from whom to obtain any required certification.
You have no start-up capital. Ms. Frankel’s article outlines several businesses you can start; however, many require financial investment. Let’s backtrack and suppose you have an idea for a business but have saved nothing for this venture. In this case, you must determine ways to work harder or smarter than your competitors.
Consider these tips if you don’t have start-up capital:
Choose a business that doesn’t require a large amount of start-up inventory.
While marketing is important, word of mouth is the cheapest way to advertise your product or service. Start selling through free outlets like social media. Occasionally offer service in exchange for referrals or testimonials. Once your business starts to grow, you will be in a better position to consider more costly marketing techniques.
Be willing to devote a lot of time to cultivating your business. The hours and elbow grease you invest in your business may well be the determining factor for success.
Identify your community of supporters. Find a mentor and others who are willing to help. Use these resources to find answers to as many of your questions as you can.
To summarize, I suggest you consider that while the pandemic has been devastating in many ways, it has also presented opportunities. Now may be the time to determine ways to take advantage of them. Start building your community of support by sharing an idea for a start-up business you may have in the comment section.
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