Welcome to our first blog ‘Starting a Business in 2020’ aimed at start-up businesses!
If you are thinking of starting a business or you have recently started a business then this blog is for you.
We will be posting these blogs on a monthly basis; we hope you enjoy this first edition:
Source: Bloomberg, 17th June 2020
With a recession caused by a global pandemic you could be thinking now is the worst time to start a business.
However, it is not all doom and gloom!
There will never be a perfect time to start a business. Starting a business requires you to take a risk. Starting a business in the middle of a recession might sound insane – but here is why you should consider it …
You have bargaining power. Suppliers need customers to supply to. In a recession, customers (you and your startup) gain bargaining power. Now is a good time to negotiate a deal with suppliers.
Interest rates also tend to fall during a recession which means that if you are seeking a loan to finance for your business you will benefit from lower rates during a recession.
2.E-commerce and essential industries are thriving
E-commerce has been growing at the expense of high street stores for a long time, and the Covid-19 pandemic has accelerated this transition.
Many of us have struggled to get essentials delivered during this time. That is because businesses have not been able to keep up with the current demand. Now is a great time to start a business in these blossoming markets.
3.The talent pool is huge!
With multiple large companies making the news due to planned redundancies, what is not being said explicitly in these articles is that talented employees are re-entering the job market. This is good news for a start-up. These skilled individuals are looking for work and you could hire them!
4.Innovations are needed
Your business can be innovative. Innovations that benefit your customers will be appreciated greatly during the toughest economic times. Grants are also potentially available for new and innovative ideas so it can be a great way to help get your idea off the ground.
Established competitors may have higher costs than a start-up during a recession due to contractual obligations. This gives start-ups the opportunity to undercut these businesses on price. Whilst we would never recommend competing solely on price as a strategy, there is no doubt that in these current times, price is a major factor.
6.Investors move away from the stock market
Savvy investors will not want to keep funds in the stock market during a recession if greater returns can be made elsewhere. Your business could be their perfect investment opportunity.
You will not be the first to start a business in a recession. It has been done before! Some of the business that began in a recession are now household names – Apple, Microsoft, IBM – to name a few.
Okay so you are off and running – you want to do it – so what’s next ?
What is key to business success?
Whilst there is no magic wand to wave which guarantees business success, there are some key factors that often differentiate a successful start-up business.
1.Strategy (Most of your competitors will not have one !)
A clear business strategy, with well defined business goals will keep you on track.
What are your business goals? Do you want to offer new products and services?
How will your business be different from others?
If you need assistance formulating your business strategy you can book a call back with a member from our dedicated team here
The right tools and the right processes can save you both time and money. Check out our next blog which will be about free and cheap software and apps for start-up businesses.
Think about software and apps as the tools to help you get the most from your business. Would a carpenter use a knife to cut through thick wood? No. Therefore select the right tools for your business to get the best returns.
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The importance of networking must not be underestimated. The contacts that you make can become vital to your business success.
By building trusted relationships, you expand your own sales force and there is no better lead than a qualified referral lead.
In addition, meeting people with the business skills that you do not have will give you an essential network to call upon when your business needs skilled input in areas that you do not specialise. Ask for help – often the most successful businesses are surrounded by a network of experts.
To join our FREE networking session click here
Doing business without focused marketing is like winking at someone in the dark. You know what you are doing but nobody else does.
This should never be underestimated. It is vital.
At Accounting and Beyond, we work closely with Sharon Slade from SLS Marketing to ensure that our clients can benefit from bespoke marketing strategies, you can find out more about Sharon by clicking here.