Lockdown: The right time to start a business?
The best time to start a business
I’m not sure you can pick the best time to start a business. But, is lockdown the right time to start a business? A recession, furloughed staff and reduced footfall are certainly challenging but these can create innovation, client demands and new opportunity.
Why is lockdown the right time to start a business?
COVID-19 has taken away people’s jobs and people’s hobbies and recreation choices. While this is frustrating and difficult, it may mean you have more spare time on your hands.
Starting a business requires lots of things, with time being one of them. If you commit that spare time to starting your business, you could be onto a winner.
Furlough leave and redundancy – You may have been furloughed, which means you’re currently unable to work for your employer. It doesn’t mean that you can’t work at all. You will be able to use your spare time on your new business. If you’ve been made redundant, then it could be the push you need to go it alone.
Changing customer demands – People may no longer be visiting their local restaurants but they are still looking for takeaways. They may not be visiting the hairdressers but home hair solutions and products are still in demand. If you can find out what people need at the moment, there may be a new business opportunity.
How will the economy affect your business start-up?
In the current climate, things are different. And they’re likely to be different for a while yet. Social distancing is likely to be in our lives for the foreseeable, so business start-ups need to adapt to that.
Brexit hasn’t gone away either. We are still going to leave the EU and there are likely to be changes to the economy because of that. Will you need supplies from an EU country, for example?
The COVID-19 pandemic will likely put the UK and many other countries into a deep recession. Will your business idea be able to survive or even thrive? It may not be the time to start a luxury car business but providing environmentally friendly packaging for takeaways could be a success.
Climate change is still the biggest challenge we have; which is saying something given the global pandemic we’re in! Making sure your new business idea supports the environment or doesn’t work against it will be important.
Research before you start a business
Once you’ve considered external factors such as the economy, you need to look at consumer demand. What is your business giving people that doesn’t already exist? Are you giving them something different or doing it better?
Take time to plan. Ask other local businesses and people who don’t know you. If you ask your friends or family, they are likely to tell you what you want to hear!
If you’ve done your research and remain convinced that lockdown is the right time to start a business, you’ll need to create a solid business plan. There are legal considerations and business structure to think about, as well as financing and marketing. Here are our top 10 tips for creating a firm to succeed.
Is it going to work financially?
If you already have an accountant, now would be a good time to speak to them. If not, it pays to find an accountant to work with. They will be able to listen to your new business idea and make sure your plans are watertight. They can also advise you on the financing options to get you started.
Once your business is off the ground, your accountant can provide bookkeeping and tax advice too. This gives you more time to spend on the other aspects of starting and running a business.
Should I start a business now?
If after reading this you’re still wondering whether to dip your toe into the entrepreneur pool, here’s a summary.
- COVID-19 has brought major changes to the way we live, but this can create opportunity
- You may never have this much free time to work on the new business again
- Think about the environment
- Do your research (don’t just ask friends and family)
- Does it work financially (speak to an accountant)
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