Given the current economic conditions, starting a business may not seem the best of ideas. Or, is it?
The pandemic may have affected businesses of any size but it has also paved the way for new startups, especially those that managed to optimise crisis-induced market needs. Some companies were borne out of the need to pivot, while others were created out of the need to survive the loss of employment.
Believe it or not, now is the best time to kickstart your business.
Signs you're ready to start a business now
1. The time is ripe to launch your entrepreneurial dream
Over the course of history, economic recessions have become breeding grounds for some of the most successful businesses. General Electric was launched during the Panic of 1893. Microsoft was founded during the 1973-75 recession. Instagram was created during the 2008 Great Recession.
History repeats itself during the current pandemic. According to the U.S. Census Bureau’s monthly and the Business Formation Statistics (BFS), business formations surged during the second half of the 2020 pandemic and continue to 2021.
A report on new enterprise creations from the Organisation for Economic Co-operation and Development (OECD) also showed a steady increase of business formations from the first to the fourth quarter of 2020 for most member countries.
During the last quarter of 2020, there was also a surge of new business entities in the wholesale trade and retail sectors in Singapore.
Suffice to say that the current business landscape welcomes new players with open arms.
This could be you.
2. You're financially stable and able to fund a startup
By this, we mean you have the ability to invest in a startup without hurting your personal finances.
There are a lot of low-investment startups that you can explore, so a huge capital isn't always necessary. However, you must have enough funds to keep you from running out of money while you run your startup.
If you have existing debts, and you lack financial backing in case of setbacks, you might not be in a financially stable state to start a business.
In this case, work on achieving financial stability first. Find ways to better deal with your pandemic debts. Set up options to earn passive income while you keep your day job and/or engage in short-term or long-term investments.
It's also important that you already have a sizable emergency fund before you launch your startup. This way, if your business fails or an emergency comes up, you have emergency savings to fall back on.
Most financial experts recommend that you at least have an emergency fund that can support your business and daily needs for half a year.
3. You have the right mindset
If you want to be your own boss, you need to develop an entrepreneurial mindset.
Can you afford to leave the comforts of a stable day job?
If you shiver at the idea of losing the anchor that your monthly salary provides, you're not ready yet. It takes monumental courage to give up job stability for starting a business that could fail in five years.
Do you have the ability to solve problems on your own?
This is an essential skill if you're to sustain your business, especially if you're in a one-person team. In a corporate setting, you can rely on support from your boss or peers. Not when you run a business, however.
Are you willing to make compromises/sacrifices?
Running a business, especially when you're starting out, will require 24 hours of your time, seven days a week. You'll need to skip a few family events or push back personal plans so you can give your startup your undivided attention. You'll also need to compromise or agree to tradeoffs in your business dealings.
Learn 3 Things Entrepreneurs Must Value
4. You understand the basics of running a business
Before you jump to becoming a full-time entrepreneur, you must have a good idea of what running a business will be like. At the very least, get a good handle on the business you plan to start. Perform market or product research or undergo training.
If you're to succeed, you should be armed with the business fundamentals. Some of the key areas of activity you should explore are:
- Marketing
- Finance
- Research and development
- Production
- Distribution
- Regulation
- Labour
You should also learn some key business skills:
- Strategic Management
- Financial Management
- Operations Management
- Basic Accounting
- Marketing
- Sales
- People Management
If you lack two or three of these skills, consider hiring employees to fill in those specific areas if you can afford to.
5. There's a market need that you can fill
Think about whether there are people who need the product or service you plan to provide. Who else will buy what you're selling if not your target consumers? Filling an existing market need is also one way to gain an edge over your competition.
Take cues from industries or companies that thrived in this pandemic because they supplied what the populace demanded. Our current situation, for example, has attracted many online Forex traders. You can take advantage of the situation by starting an online broker quickly and conveniently.
Bootstrap the right way
Now, you might think, why start a business given the crisis we're experiencing and the tight financing environment? This is where making smart decisions will come in handy.
- Choose a business that requires low startup cost
- Rent or buy used equipment
- Opt for ready-made business infrastructure
- Take advantage of free advertising or marketing
Become a White Label with Fullerton Markets
Take advantage of our White Label solutions that will address some of your major concerns in starting a business.
Remember the growing number of Forex traders during this pandemic? That's a market need right there that you can fill by starting your own brokerage.
Because you're investing in a turnkey package, you can jumpstart your brokerage in a platform built for your immediate use. You'll also receive the required training to run your company like a pro, technical support, as well as marketing solutions.
As a White Label, you will be well and truly on the way to becoming your own boss.
Ready to grow your wealth in the world's largest financial market and enjoy unlimited bonuses at the same time? No better place to start than right here with us! Start trading with Fullerton Markets today by opening an account:
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