With another national lockdown being implemented in the UK and unemployment rates continuously on a rise, it is becoming more and more likely the country will be entering another recession. But with more time on our hands and endless online resources, can starting your own business now be the beginning of something great?
Starting your own businesses in lockdown doesn’t sound realistic for many people – with economic uncertainty and big giants going into administration – you may be thinking it’s too competitive to venture into the business world. But that’s not entirely true and it’s definitely an area to explore before totally crossing it off your list!
There are plenty of benefits that come with starting your own business – being your own boss, doing what you enjoy, self-growth, and development. Yet a lot of people lack confidence in themselves and don’t give entrepreneurship a chance – especially in a pandemic. But starting a business right now could be better than ever – with less competition, more talented people on the lookout for job opportunities, and people wanting to support local businesses.
In this blog, we look at how and why starting your own business in a lockdown can benefit your success.
Is it a good time to start a business now?
Most businesses have been impacted by Covid-19 in some way. Businesses operating in sectors such as hospitality, leisure, and retail have experienced a negative impact on their trading, hence why many entrepreneurs had to reconsider their business plans.
With that being said, there is proof where in the past businesses thrived during an economic crisis and why now may be the perfect opportunity to start your business. Companies such as Airbnb and Disney started and blossomed during recession periods. Their success came because the businesses were able to find a gap in the market which resolved the public’s issues. For example, Disney created cartoons for the public’s entertainment during economic crises – the cartoons were an escape from people’s suffering, which encouraged them to continue the consumption of Disney cartoons, making them one of the biggest businesses since.
So, you must find a unique selling point (UPS) for your business that resolves a potential customer’s problem. For example, many courier companies have been struggling with the increased demand in service during the Coronavirus pandemic, causing delays and meaning people have to wait days, if not weeks, for their parcel.
You also have to consider who your target audience will be, how you will reach them, and how you will deliver your service/goods to them. With a global pandemic in mind, you will have to remember that starting a business within sectors, such as live entertainment and independent stores, is probably not a great idea right now. However, finding alternatives, such as at home entertainment and online stores, are a potential business idea. So yes, it’s a good idea to start a business right now if you carefully consider all aspects.
Best businesses to start in lockdown
The pandemic gave people more leisure time and an opportunity to begin new (or continue) hobbies and passions that they may not have had time for before. Creating revenue and business from hobbies/passions has been a trend during Coronavirus and is a great starting point for setting up your new business – you already should have the materials and knowledge needed to create the service/goods. Popular hobbies that saw people turn into business have been food and craft items – think baking, embroidery, and resin decorations.
No need to worry if you do not have a hobby that you can’t turn into revenue, learn a new skill within these sectors that have been doing well during the pandemic.
Thriving businesses during Coronavirus:
- Online retailing (e.g. clothes, decorations)
- Courier services (e.g. food delivery, flower delivery)
- Technology (e.g. fitness apps, games, collaborative software)
- Indoor entertainment (e.g. at home games, video streaming services)
There is not one specific business you can start that will guarantee you success during the pandemic – finding a USP that is relevant to the current situation, which will resolve a customer’s problem, is the best way forward. But like mentioned before, bear in mind the continuously changing government rules regarding non-essential business – hence why it is encouraged to start an online business.
How will I fund my business in lockdown?
Due to many people currently out of work, financial worries may be stopping you from starting your own business. However, there are ways to start a business with no money. Using resources you already have can get you started in your new venture, there are also plenty of free resources you can give a go, which will help you with starting your business.
Free online resources
Due to people being out of work, the government has recently launched new online training courses to help people learn and boost their workplace skills. The training was created to give people access to free and high-quality courses to help them learn and build up their workplace skills. The courses available include practical maths, computer essentials, professional development, and computer science and coding.
Social media platforms are great free marketing tools, which can help you find and attract your target audience. Depending on your business type you may use different social media platforms for marketing, the most popular platforms for marketing include Facebook, Instagram, Tik-Tok, and YouTube. You can learn how to use social media platforms for marketing on free online videos, podcasts, and blogs.
Loans
Economic uncertainty has the benefit of lower interest rates and therefore more affordable loans – even small ones. However, if you are not in the position to get a loan then find someone who is and who can help you out – like family and friends. With that being said, starting a business from home can be easier than you think.
What you need to get starting setting up a new business
It depends on what type of business you are planning to set up. Some businesses require more materials than others. For example, if you are planning to sell a tangible thing, such as clothes, then you will need scissors, measuring tape, and a sewing machine. Whereas, a courier business will need transport to deliver the post.
Most businesses will need a laptop or a PC – it will be essential when you are setting up your business (such as registering the business), and marketing your products/goods. Other materials depend on your business type so make sure you research what you will need to successfully provide your specific service/goods.
You will also need a business plan. A business plan is essentially a roadmap of how your business will run and grow. It’s essential for a successful business. You will also have to pick a name suitable for your business that is not already used by someone else. Once you pick a suitable name, you will need to register your business to ensure it’s legal and to protect your brand.
Lastly, for our recommendations, you may choose to set up a business bank account – it can be a confusing and stressful task however also a very important one. Therefore, it’s a good idea to do your research on the best business banks to set your business up with.
Has this motivated you to start your own business? Contact Mint Formulations today to register your company name now!
