There are many reasons that you may want to start a business; perhaps the lack of capital, or the lack of know-how and even worrying about the potential risks. There are also the many reasons why you should and it seems that 2021 might be the ideal time to do so.
The US start-up environment is growing and changing, 2019 was a ground-breaking year for start-ups in the US with a record-breaking 31.7 MILLION small businesses based in the country, that’s 99.9% of all US companies. Together they employ over 60 Million people. Total contribution to the US economy is an amazing $9.5 TRILLION, with almost $500 Billion in exports.
Of course, that was all before COVID-19 made an appearance in 2020.
But these are statistics for the businesses which have already started up before COVID-19, and some have been established for decades, what help is available for budding entrepreneurs hoping to start-up today and what are the reasons to start now.
A crisis yields opportunities
Numerous successful companies in the U.S. launched at what might have seemed like the worst possible time. Many even launched during major economic recessions.
Join the ranks of well-known firms: General Motors, Microsoft, Hyatt, Trader Joe’s, Airbnb, and Uber. They all saw an opportunity to launch and attract customers in the face of economic trouble or even a full-blown crisis.
Got an Idea?
An idea for a start-up can come from anywhere; receiving bad service, using an inferior product, a hobby or even the latest trends. The US is the overwhelming leader when it comes to innovation. Ideally, the idea will be a hobby or something you feel passionately about, but thorough research and training can be just as good.
Financing your Start-up
Obtaining finance to fund your new business can be the most worrying part of setting up a business, and whilst still a challenge, successfully financing your business is now more likely than ever. As well as the more traditional routes of Banks, Lenders and Friends/Family the US is home to a growing infrastructure of investors who are only too keen to back great ideas and passionate entrepreneurs.
Grants are also available – check out uschamber.com for solutions.
Interest rates are low, so finding the best deals on loans is easier than ever and with the latest tax incentives it has never been easier to get finance to start a business.
Research conducted by the Stanford Graduate School of Business found venture capitalists are mostly still fully funded and in a positive cash position to continue investing in startup businesses that have a relevant product or service for the new business environment.
Start without quitting the day job
Quitting your job to start a new business can bring on anxiety, like nothing else, the security of a paycheck at the end of the month without any worries about rent, rates, capital, sales etc. But there’s no reason that you have to give up the day job, most people will start their business while still holding down a job, ensuring that there’s a salary still coming in and the confidence and time to build cashflow into the business.
So long as you’re not launching a business in competition with your current employer or using their time and resources you should be just fine,
Gaps in the market
There’s a tendency to think that all the good ideas have been taken, but you’ll always come across news stories of new ideas and products and services in the marketplace. There are many gaps in the marketplace for a specific product or service for a particular set of people.
Look for bad service or bad implementation
How many times have you come across a product or service and been annoyed by it, it could be anything you come across your day to day life, take note! How could the product or service be improved? Take notes and find a solution.
Technology has opened up a world of opportunity
Ok so you have the idea to start a business, you have worked out how to implement the idea, but is there a way to do things quicker, better? When it comes to a route to market there is nothing better than to embrace technology.
You’ll need to have a website (that’s a given), social media accounts set up prior to launch to give you time to build a community around your brand, use Facebook, Twitter, Pinterest, even Instagram and drive traffic to your new website, get people to sign up for newsletters and maybe give an early bird offer so that you have their permission to contact them.
In fact, World Economic Forum research suggests that social entrepreneurship could be one of the major driving forces that helps move communities and the world past the events of 2020.
Start in lean times and reap the benefits
If you can launch a business and do well on a lean budget at the start of a recovery, then imagine what you can do once the environment turns the corner and begins to grow again.
First, you will be in a good position to grow. Second, you will know how to operate with a skeleton crew, with a minuscule budget, and fewer resources.
Keep overheads low
It’s 2021 and even discounting COVID-19, many businesses are using remote-working to keep their costs low and their employees happy. Find a small space at home, use freely available solutions to communicate and collaborate. It is now proven that remote-working is more effective than the daily journeys to central offices – Forbes.
Perhaps the greatest reason to start a business (in any year) is the freedom to do as you wish, the flexibility to work anywhere you want, with anyone you want and how you want, giving a great reason to make 2021 your new start.