Why it is the Right Time to Start an Online Business?
In these challenging and uncertain times of COVID-19 pandemic, global markets have taken a big hit. Many small businesses have died, and the bigger ones are struggling each day to keep up with these hard times.
However, when you carefully view the statistics, not all businesses are in bad shape. Businesses that are online are doing exceptionally well in these tough times and why not. People are stuck in their homes, and they are relying entirely on the online marketplaces for all kinds of needs.
It proves that in this digital age, having an online business is more profitable than that of the traditional style of business. It has a greater scope to reach the markets worldwide, and in the worst of situations, it holds itself pretty good compared to the other businesses.
This brings us to an important question for every new entrepreneur, that is it the right time to start your online business? So we would like to tell you that uncertain times are often the times when the best of the innovations are produced that lead to the betterment of both the business and society.
You’d be surprised to know that Microsoft, FedEx, Burger King, and many other big organizations were started amidst similar hard times, and their success story is no secret. The accessible technology and the growing demand for products makes it a perfect time for you to start your business.
Reasons for Starting a Business Now
There are a plethora of reasons for you to start an online business at this time. Let us consider some of those:
More Room for Innovation
It is a known proverb that necessity is the mother of new inventions, and rightfully so. The world right now is heading towards a global recession due to the COVID-19 crisis. When the recession comes, the number of problems for people multiply. This gives you the opportunity to find the right solutions for those problems and convert them into a business model.
In the current situation, many small businesses have emerged, filling the gaps left by bigger organizations. For instance, many local product deliveries have started in order to meet the demand of consumers. Teachers have started their online classes and courses as the demand has suddenly risen.
In the current scenario, the markets for most businesses have been disrupted. Also, many businesses that were just a replica of some other big businesses are struggling to sustain their business. So if you have an innovative idea, it is a good time to pitch it in.
The market is more receptive to newer ideas, and the competition for it will be certainly low. All you need to do is manage and maintain your business with more involvement so that no other company can use your idea to lead themselves.
The current times have made the online presence of the people larger than ever before. People have nowhere out to go due to the lock downs, and all they do is wander on the internet. This gives you an excellent opportunity to spread the name of your brand. It is easier to target a particular community, age group, or even gender right now as all our already clubbed together, giving each other the emotional support.
Also, there are many technical supports too for promoting brand awareness at this time. Most businesses are focusing on online sales, and a huge demand for online promotion is there. The competition for digital marketers has risen, which has lowered their previous work rates.
Many emerging platforms have made a significant fall in their advertisement rates to make their name in the market. So you must make the most of this opportunity for your new online business.
Unfortunately, a large number of people have lost their jobs due to this pandemic. Though it is a sad reality for them, it can be an excellent opportunity for your business. You can have access to more skilled people than ever before and that too at much lower costs.
The availability of people from IT support, customer service, and design fields is large. You can use their talent in your business or maybe can do business out of them by providing them jobs and opportunities in other organizations. For instance, starting an online business like LinkedIn, Monster.com, etc.
Cheaper Business Registration
Many governments across the globe have announced special packages for the people of their country, considering the current situation. Most of these packages are in support of starting new businesses to make a positive effect on the falling economies.
Therefore registration fees for starting new businesses and SMEs have been lowered or completely waived off by many governments. This can save you some money by starting a business now.
It would be hard to believe that the interest rates of many organizations are considerably low even though the economy is struggling for almost every nation. Most banks and financial organizations are also witnessing many problems in their business due to less circulation of money in the market.
Hence, seeing the situation of people who wants to open startups but are not financially stable, the banks have lowered their interests so that more businesses can grow and make the economy stronger for everybody. This step is also highly backed up by the government of the nations.
Things to Consider While Starting Your Business
Now that we are familiar with multiple reasons that indicate that opening an online business can be a profitable step right now. The most significant question comes, where to start and how to go about it? So let us view some of the essential things to consider before opening your business.
Know Your Financial Situation
Money is the primary aspect that is required to start a business. So you need to know the money requirements for the business you want to start. If you haven’t decided on the business yet, then it will be wiser first to have a detailed look at your savings and finances.
No business starts giving profits from its very first day. It takes months to years for a business to settle and finally give the fruits. So you might not want to use all your money in your business and wisely keep a little backup amount.
The money requirements that you need to consider for a business are as follows:
- Initial costs to start the business.
- Money required for the platform you wish to use for your business.
- Costs needed to fulfill the actual process of the business.
- Employees and third party costs.
- Website building and development costs.
- Costs required for the marketing of the business.
Think About Your Time Commitment
You need to understand this fact that starting a business is no cakewalk, and you need to be fully involved with the business if you are serious about its growth. You might be thinking of starting the business with your current job and side by side run it.
Though it is possible, it will need an extreme amount of effort to implement both successfully. So it would be best if you make written plans beforehand so that later it does not become a challenge for you.
Choosing Goals Wisely
You must be extra careful while setting a goal in these uncertain times. Some businesses can earn a lot, and some do not have a scope at all, such as traveling and hotel businesses.
Ensure that your goals are crystal towards what you want from your business. Never make the mistake of starting a business that you are confused about or isn’t practical in these situations.
Keep the Focus Right in Choosing Your Niche
As we discussed earlier, the demand for online shopping is exploding right now. But this is not true for every single product on the market. Products such as entertainment systems, educational items, etc. that are seeing extraordinary demand.
Whereas products like car accessories, camping items, etc. have extremely low demand. So before you jump in the online business, analyze the products and markets that are trending and consider doing business in those markets.
There never is a time that is a hundred percent perfect for the start of your business. If you are smart, you would know how to make the best out of any given time. Though this COVID-19 crisis has hit hard on the global markets, it also has opened up many opportunities for agile entrepreneurs.
So don’t rush in starting your business, sit back, and take your time in analyzing the situation and your capabilities. And then step in the business world with an active and strong approach to become successful in what you do.