Natural instincts might suggest now isn’t the best time for you to put all your eggs in one basket and invest in something new. However, whilst rife uncertainty has forced some businesses to close their doors, it has allowed others to thrive.
The coronavirus has caused changes in consumer behaviour, meaning it might be time to fight those natural instincts and explore why now is actually a great time to start a business.
New consumer demand
Some of the world’s largest companies were founded during times of recession. Past recessions have helped build business giants such as Disney, Uber and Airbnb who found success by welcoming the changes and providing products and services the world needed during hard times.
The economic decline caused by the pandemic has created a gap in the market for new businesses to do a similar thing. Life as we know it seems to be changing, in return increasing the demand and therefore potential success of new products and services that fit with our freshly adapted way of living.
According to figures published by the BBC, between March and August, 2.7 million people were claiming benefits for being out of work or on low incomes. This was an increase of 120% of people across the UK falling into unemployment, with 76,000 of those being people aged 16-24.
Whilst it may seem inappropriate to celebrate unemployment, it does put potential new businesses at an advantage in terms of growing a workforce. With such high numbers of people out of work, the demand for new jobs is greater – leaving you, the employer, with the pick of the bunch when wanting to quickly fill job roles.
In an effort to help protect businesses most affected by the pandemic, the government introduced a temporary reduced rate – 5% – of VAT on certain supplies. The reduction means that, until January 2021, businesses only have to charge 5% VAT on the products they sell as opposed to the standard rate of 20%.
These savings could help reduce the risk felt in starting a new business right now, as more money can be circulated back into the business itself rather than being paid to the government.
The right environment
All businesses need a base, an environment that suits you and your business and is somewhere for the team to work efficiently and comfortably. Finding somewhere suitable can be pretty difficult, but companies are available to provide you with your very own start-up space.
There’s the flexibility to provide 1-1000 desks, meaning that this space can be used to not only start a business but watch it grow. One office provider, BE Offices, is particularly unique in that it doesn’t ask for a deposit or any upfront costs, meaning that your money is reserved for your business.
Having such a cost-effective workspace is ideal for a start-up business – and, as internet access, calls and furniture can all be included in the monthly price, you only need to focus on the business and its brand and let the office provider deal with the rest!