Although some entrepreneurs are hesitant to start new companies during tough economic times, others are unfazed and readily pursue new opportunities. Recent articles in both The New York Times and The Wall Street Journal document the stories of people who are creating new companies and jobs for themselves and others during the current COVID-19 pandemic.
Of course, sizeable risks are involved, so those eager to start a new business must be ready to revise their goals if their initial plans fail to garner the level of support they desire.
Here is a general overview of the favorable conditions that are causing many to start new businesses. Additional information looks at the types of companies
being started to meet new needs and better address more established ones.
Unique opportunities await those with strong business skills
While some experts in the United States are predicting that as many as 700,000 firms may go under this year, many entrepreneurs are already starting new businesses of their own. The following conditions are helping these creative people move forward.
- Necessary resources are sometimes easier to obtain. Competition for a wide variety of resources required to start and run business are currently in less demand.
- New or unique customer needs are developing and must be met. With so many Americans still working from home, there are new companies eagerly searching for ways to bring useful goods and services directly to them in an affordable manner.
- Many highly qualified workers are now available. Unlike pre-pandemic times, many
very capable people are looking for work right now and most are more than willing to accept a decent living wage — or even lower fees.
- Low interest rates are making it easier for many to borrow the start-up funds they need. At present, a large percentage of business investors are still ready to cut deals, even if for slightly less generous sums of money. And unlike the country’s last major recession, a fair number of the unemployed still have some savings left that they can use while starting a new company. Others are borrowing money from family and friends.
- Cheap equipment can be purchased, leased, or rented right now. After a business closes, new entrepreneurs can often negotiate with the former owner to use or purchase his/her equipment for very reasonable fees.
- Less expensive leases and rental spaces are plentiful in some parts of the country. Reasonable subleases are helping many people find affordable brick-and-mortar business locations when they need or prefer to sell their goods directly to their customers. Commercial kitchen leases and subleases are also in demand for all the new takeout food businesses that are feeding those not seeking charitable food donations.
These are just some of the realities that are helping brave entrepreneurs try to make their dreams come true – instead of working for someone else.
Types of new businesses that may be gaining traction during the pandemic
- Medical or healthcare-related businesses. One young woman had to quit her day job so she could stay home with her child whose school had closed. She is now supplying an area hotel with specialty pandemic masks for all their workers and guests. Another young woman has created a business called MD Ally that helps 911 dispatchers and other similar groups reroute their nonemergency calls to doctors available to help on a virtual basis.
- One fitness trainer decided to create a mobile bike repair business. This man is now making so much more money in his new job that he turned down the chance to return to the gym that called and offered his old job back to him. Other personal trainers are now charging customers fees to watch specialized workout videos on online platforms.
- A school therapist has now created a thriving private therapy practice. This woman now has about 60 clients and may soon need to turn away potential new clients and refer them elsewhere. Due to the pandemic, many people are needing her help coping with new losses and ongoing stressful realities.
- Cleaning services. Given the critical need to keep all office spaces as clean as possible to reduce the chance of spreading Covid-19, people offering to clean both offices and homes are finding plenty of work.
- Practical technology companies. Many Americans can readily use the help of someone who can teach them how to set up a new computer and related equipment — or use Zoom and other online services while working from home.
- Nearly every type of pick-up or delivery service involving common daily needs. Besides meal pickup and delivery services, many people might welcome the chance to have someone come pick up their dirty laundry – or take packaged products to a nearby Fed Ex so they can be immediately shipped out to customers.
- Clerical and billing support workers. Chances are that most cities have many new people working at home who could use some regular help with their basic clerical tasks — while they concentrate on tutoring their kids and handling their business managerial duties.
Of course, your success in creating a new business will almost always revolve around your readiness to obtain sound legal advice from your Houston business lawyer, after you have carefully reviewed and followed the basic business startup advice readily available on the SBA (Small Business Administration) website. If you have great ideas, a strong business plan and adequate financial support, the pandemic might offer you opportunities less likely to be available during more competitive economic times.
Please feel free to contact one of our Murray Lobb attorneys. Once we decide to work together on your new business venture, our firm can provide you with the critical legal advice you will need. We can also help by drafting the various types of contracts and other documents that are often required.