The events of 2020 plunged the world into a period of uncertainty. Businesses struggled, inflation continued to rise, the stock market mired in volat
The events of 2020 plunged the world into a period of uncertainty. Businesses struggled, inflation continued to rise, the stock market mired in volatility, and interest rates remained high. The climate wasn’t the most conducive for starting a business in 2020.
However, people seem to have taken the plunge and embraced entrepreneurship fully. In 2021, there were more than 5 million business applications, shattering the previous record of 4.4 million business applications set in 2020. Many people have started trading their nine-to-five jobs for being their own bosses.
Not all these startups are immediate money-making ventures, but an increase in entrepreneurship has always been vital for economic growth. Business startups have traditionally powered economic recovery and sparked innovation. In fact, some of the biggest companies today began during a crisis.
While many see these turbulent times as a reason to rush for the exit, others see opportunity. Here are four main reasons:
1. Abundance of technological tools
One advantage of modern startups is the abundance of the tech tools at their disposal today. No matter your industry, there’s plenty of business software you can use. Business software such as customer relationship management (CRM), accounting, design, or service like this lawncare business software can be helpful.
Cloud computing has also made many expensive software suites affordable. For instance, software-as-a-Service (SaaS) lets you subscribe on a monthly basis rather than buying the software outright. Buying software might not be ideal, especially as startups scale their business.
Tech tools that can help your business streamline and automate operations, like this estimate template from Jobber, have become more accessible and affordable than ever. Computer hardware is also relatively cheaper. A reasonably powerful setup won’t break the bank compared to past setups.
If you have no idea how to create a website, use social media for advertising, or use design apps, don’t worry. Some resources make it easy for you to do all that. Moreover, there are many online communities that you can tap into to help you run your business.
In today’s business climate, having enough resources is no longer the question but a question of an individual entrepreneur’s resourcefulness.
2. Hire talents from around the world
With digitization, the world has become smaller. Globalization makes it possible to run a business with no full-time employees. Also, companies could only use talent available within the community. Thanks to the internet, hiring workers from far-away places is not only possible but affordable too.
Thanks to the freelance economy (aka, the gig economy), the pool of talent available for enterprising individuals has just become larger. The freelance economy today is worth USD$1.2 trillion and shows no sign of slowing down. As a business owner, this serves as a near-limitless pool of talented individuals to work with.
Upgrading and learning new skills have also become popular trends. Nowadays, businesses can easily find people with skills in online journalism, cybersecurity, video/audio production, graphic design, photography, data science, and digital marketing, to name a few. Besides, hiring freelancers costs only a fraction compared to hiring full-time workers in your area. This flexibility in hiring freelance talents can be beneficial to startups.
3. Starting small has never been easier
Starting a business today no longer needs a large capital. A professional-looking website and an effective digital marketing strategy to bolster your online presence can do a lot. Some businesses have decided against setting up a physical office and hiring a full staff. You can also take advantage of online resources like automated emails, social media management, and website design.
A small startup can also be as agile as established businesses. If you have a talented team that produces something valuable, your company can compete and gain a foothold in your industry. With marketing, a social media campaign for a startup done in-house can be very effective. You don’t even need a team with a large budget; a talented individual running your website and a social media account are a great start in making your brand known.
A lot of websites also offer free information about search engine optimization (SEO), digital marketing, and creating a marketing campaign. Do a great job with these, and some investors and sponsors might notice you locally and worldwide.
4. Efficient methods of reaching your target audience
Today, reaching out to people halfway across the globe is just as easy as reaching out to your neighbors around the block. So having a lean, mean, digital marketing machine can reach your target audience more efficiently. Through analytics, you can gauge the effectiveness of your digital marketing accurately, unlike traditional marketing.
Moreover, traditional marketing can be expensive. Digital marketing can give the same benefits on a much smaller budget. Social media, affiliate programs, pay-per-click campaigns, and others make promoting a brand easier and more efficient. You can customize your marketing to reach your target audience so you have a higher chance of converting.
That way, you can spend your marketing budget more efficiently, increasing your return on investment (ROI).
There have always been entrepreneurial opportunities during a crisis. However, the digital era has only magnified these opportunities. Technological tools have made it easier and cheaper to start a business. Moreover, remote workers have expanded the talent pool, so you can hire passionate individuals from anywhere in the world. Marketing has also become more efficient and provides a higher ROI due to digital marketing. All in all, there’s no better time starting a business than now.