The COVID-19 pandemic has disrupted various businesses across the globe. 2020 was indeed a tumultuous year as many small and medium-sized enterprises (SMEs) and even big-scale companies had either a temporary or permanent shutdown.
But this year, many businesses have started to reopen while trying to bounce back. And surprisingly, new business applications have surged in the U.S. Aspiring entrepreneurs and laid-off employees have seen new business opportunities in the pandemic. They have thought about taking the plunge into having a business venture.
If you’re an aspiring entrepreneur looking to start a business, here are six key factors to consider:
1. Thriving Industries in the Pandemic
Before launching a business, you must first know what industries are thriving amid the global health crisis. The U.S. Chamber of Commerce named some flourishing businesses in the pandemic. These include the following:
- Cleaning services
- Delivery services
- Grocery stores
- Fitness equipment suppliers
- Landscaping services
- Mask makers
Most of these industries have become relevant during the COVID-19 crisis. They offer goods and services that will help people rise above the pandemic situation.
2. Your Local Needs
Now that you know what industries are flourishing in the pandemic, you must next study your locality. The goal is to identify your local needs and the kind of business that can meet these needs.
If you’d like to get into the food industry, consider opening a juice and smoothie bar in your area. Be sure to produce healthy and nutritious smoothies for the locals. Another business idea is to provide a cleaning service in your area with disinfection and sanitation. Lastly, you can get into mask creation and designing since wearing a face mask is mandatory when going outdoors.
3. Your Interest and Passion
Another key consideration is your interest and passion. No matter how thriving a business is, you won’t succeed if you have no interest in it at all. The key here is to capitalize on your hobby and turn it into money. Another is to leverage your skills into an income-generating business.
A perfect example is making hand-made crafts like candle-making, embroidery, and home decors. You can then sell these crafts and make money out of them. If you have digital skills, you can use them to start your online freelancing business as well.
4. Budget and Finances
Whether it’s a small, medium-sized, or big business, you need to shell out some money for the capital outlay. Consider startup expenditures such as property lease or construction cost, materials expenses, labor cost, and other miscellaneous expenses.
If you get into the franchise business, you need to have a huge amount of money as your long-term investment. Fret not, as there are funding sources you can rely on. One is a Small Business Administration (SBA) loan offered by banks and other lending institutions. You may want to consider applying for an SBA loan.
5. Material Supplies and Manpower
When launching a startup, you also have to factor in two key things. These include the materials you need and the people who will work for you. Of course, they depend on the kind of business you’ll venture into.
As far as the material acquisition is concerned, be sure to get your raw materials and other supplies from trusted sources. Be sure to do your homework and perform due diligence before working with them. Also, you must be highly critical in your employee selection. Remember that your initial employees will be instrumental to the growth and success of your business.
6. Business Licensing and Requirements
The last on the list is the business licensing, along with the other requirements. To run and operate a business in your area, you need to secure a business permit.
First, ask your local authorities what the requirements are. From there, obtain the necessary paperwork and be sure to comply. For the most part, you need to pay a certain amount for the business registration.
In addition, decide on your business structure, whether sole proprietorship or partnership. Plus, don’t forget to trademark your business assets, such as entity name, business identifiers, and domain name.
The COVID-19 crisis doesn’t have to stop you from launching a startup. But as a business is considered a risk, you must take a calculated risk, especially during this pandemic. To do so, be sure to consider the six key factors outlined above—from the thriving businesses amid the pandemic and your budget and finances down to business licensing and requirements. With all these in mind, you’ll make the right decisions that will set your business on the right footing.