The past year has been terrible for entrepreneurs. The fear over the deadly virus, the restrictions created to slow its spread across the nation, and the resulting economic recession – the worst since the Great Depression.
By September 2020, six months after COVID-19 was declared a pandemic, over a hundred thousand establishments across the country went out of business. It was brutal. Even big companies that have become household names in the U.S. filed for bankruptcy in the past year.
Although there were businesses that thrived, more struggled to survive the pandemic. Now that the U.S. seems to be emerging from the nightmare that was COVID-19, is it now a good idea to start a business?
To the right entrepreneurs, it is.
In the Mood to Spend
In the past year, consumers reduced their spendings and, therefore, were able to save some money. They were not going out to commute to the office or school, and they were not partying or drinking with friends every weekend. They were not buying coffee or meals from cafes or restaurants. Many of them also paused buying clothes that were meant to be worn outdoors. Women also stopped buying makeup because they had nowhere else to go.
In addition, the government, to revive the economy faster than analysts predicted and help those in dire financial situations due to the pandemic and recession, handed stimulus checks to every household.
In short, many people had extra spending money, and they want to party now that they are protected from COVID-19.
Retailers are basking in the pandemic shopping boom. In April earlier this year, Amazon reported a 44 percent increase in revenue compared to the same period in 2020. The company founded by billionaire Jeff Bezos has already reaped billions during the pandemic as people stayed at home and shopped for their needs from home.
Many of these consumers are foregoing the malls and the big e-commerce platforms. Instead, they are shopping locally to help small businesses that have struggled to survive in the past year. The boom is expected to continue for months to come.
Hungry for a Good Meal
For most of the year, restaurants were closed for diners. They only sold takeouts and deliveries.
People are excited to go out and eat instead of making their own meals at home or by ordering through an app. In fact, by April, restaurants have seen the number of diners exceed pre-pandemic levels. Expect to be very busy for a while.
However, some habits formed from the past year will be carried over to the coming months. Many consumers will likely continue to get food delivered to their homes via DoorDash, UberEats, and other similar services.
It is a good time to enter the food business. For fledgling entrepreneurs, sub shop franchises will teach you all that you need to learn to become a successful business owner.
New entrepreneurs will benefit from the closures that occurred in the past year. Meanwhile, those that survived either pivoted to another business model or have reduced earnings for several months.
While consumers are ready to spend, there are fewer businesses open. Gaps in the market are just waiting to be filled by new entrepreneurs and their enterprises.
Many entrepreneurs wait until the economic outlook is favorable before they venture into the business landscape. However, you will lose your chance to be first in the market if you wait. By the time the economy has rebounded and has regained stability, other entrepreneurs have the tools to start over or develop a new strategy.
The Perfect Time to Start Over
The pandemic led to mass unemployment. Historically, unemployment allows people to be more innovative or to start exploring their true passions. Now that they do not have a job they are afraid to lose and emboldened by the stimulus check, more adults want to chase their dreams. Some of them will want to become entrepreneurs.
There are loans available to those who want to start a business or open their own online shop with little to no startup expenditures. As long as you have the right business idea and demand for your product, you can succeed as an entrepreneur in 2021.
2020 has been tough for businesses across the U.S. However, 2021 seems to be kinder to entrepreneurs. The chance of success is high now that people are ready to spend, have spending money, and there are fewer competitors in the market.