Among many effects of the COVID-19 pandemic is the detrimental impact on the economy. Many people have lost work due to illness or a business being shuttered. Others are working remotely with an uncertain future. Still, more are no longer employed and are trying to decide how to find another job. For some, this could be the perfect time to start up a business they have always dreamed of. But given the unknowns about the pandemic, this might be a difficult time to become an entrepreneur. Here are some tips to keep in mind.
Assess Thriving Industries
COVID-19 has closed many companies but opened others and helped them to grow. Service industries, health care support, remote education, and online tech services offer career potential for a Covid start-up to those who are willing and able to become an entrepreneur. Doctor’s offices, hospitals, rehab centers, and nursing homes often outsource services like accounting, transcription, and maintenance. A personal business can do well by providing specialized services to larger institutions and companies.
Evaluate Your Ability to Run a Business
A start-up business requires the skill to operate a business as well as provide a service. You will need to take full control of planning, production, marketing, customer service, and account management. While the pandemic continues, some offices are temporarily closed or operating with a limited staff. This means you may have to be patient in working with companies that work more slowly than usual, including assigning work and making timely payments. Decide how much financial flexibility you have while weathering the pandemic to ensure your Covid start-up stays afloat until the economy returns to normal. You might be able to take out a small business loan or use a home equity account as support if business slows down or grinds to a halt.
Do Some Research
Learn from history by examining the economy during the early 20th-century flu pandemic. Which businesses failed while others survived and thrived? Of course, times have changed, and the economy, as well as occupational sectors, have evolved since then. Still, you might get an idea of the types of changes that occurred and how people entrepreneurs fared. You might also consult a mentor or an experienced business associate for feedback on your vision. Also, look at the Occupational Outlook Handbook published by the US Government each year for projections about job growth and new or changing industries where you might find a niche for your business.
Plan Long-Range Beyond the Pandemic
Your start-up should be organized to last beyond the COVID-19 pandemic. When the economy calms down and businesses reopen, will your service still be needed, or will you lose customers? Prepare a long-range plan for your company that extends beyond the current business climate. Determine whether your company can continue to offer the same services or if it will need to adjust and transition to a new and different branch of service for companies’ changing needs.
Have a Backup Plan
Becoming an entrepreneur is risky any time, but especially when life is chaotic and unpredictable. Give some thought to what you will do if your business fails for various reasons. Would you return to the type of work you are doing now or head down a different career path? It might be a good idea to take a class or two in preparation for a backup plan. If your start-up does not succeed, it could make for a softer landing.
These are challenging times, and risk-taking could be advantageous or lead to a dead end. Study the economic forecasts, evaluate your company’s potential, consult experts, and have a Plan B if your enterprise does not work out as anticipated. With forethought, planning, and preparation, you can make an informed decision about whether to start your own company in a promising field or stick with a more specific career for now.