Tips for starting your own business during COVID-19
Whether you’re an entrepreneur trying to get your start up off the ground, or an everyday Aussie looking to turn their hobby into a small business, starting a company during COVID-19 may feel like a daunting prospect.
Thankfully, there are a few helpful tips that can help get you on track to success.
Should I start a small business right now?
While the economic uncertainty of a recession is never ideal, there are several advantages to starting a business during a recession – even one pushed by the economic impacts of COVID-19.
Firstly, your business will be in good company with these brands that founded during economic downturns. Airbnb was founded in August 2008, amidst the global financial crisis (GFC). When the GFC hit, the need for short-term living grew exponentially. Also, cosmetics brand, Revlon, was founded in 1932 during the Great Depression, and has since survived almost 80 years’ worth of economic ups and downs.
Secondly, recessions are a time when innovation soars. As economic downturns lead to a number of problems that impact everyday life, now is when customers and businesses are looking for solutions. If your business can provide that, you’ll potentially be able to hit the ground running.
Further, recessions tend to mean low interest rates, and low rates may mean cheaper credit. If your small business is in need of financial support to get started, small business loans in Australia have never been more affordable.
Tips for starting a business during COVID-19
1. Start somewhere
Put simply, there is no perfect time to start a business. Whether you’re starting during a global financial crisis or during a pandemic, there’s no way to predict the future. Perhaps consider sharing your idea with a friend over coffee or putting pen to paper and writing a business plan. Whatever the first step is to start your business, just take it.
2. Find a mentor
Support is invaluable in the early days of your business, particularly for those moments of self-doubt. Not only can they help answer your questions, but they can work as networking links for you and connect you to potential clients or customers.
Also, if you don’t have a mentor and are tossing up between bootstrapping or venture capital funding your business, the latter will give you access to the experience and advice of investors who want your business to succeed.
3. Cheap is good
Starting a business during COVID-19 means that potential clients or customers are looking to keep their costs down. For a new startup with low overhead, you may be able to undercut your competition by comparatively keeping your costs down. COVID-19 may be the perfect time for your business to strike and snatch up some of the market share.
Keep in mind that when economies are strong, more entrepreneurs are looking for funding, and therefore there is more competition. If you pursue your business dreams during a recession, this may help you to stand out.
4. Stay flexible
Starting a business during COVID-19 means you are moving in uncharted territory. It’s crucial that you try and stay flexible as your business gets off the ground. This could mean anything from not setting a course that you stick to blindly, to being open to creative ways you can adapt to further quarantine regulations, as well as not just following what others are telling you to do. Try to focus on your own success, as when you’re not pursuing your own ambitions, you’re pursing someone else’s.