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We believe now is the time to start a business! Especially if it involves an online presence! Ask Marcus Lemonis, the start of CNBC’s “The Profit,”
I have long thought that recessions are excellent times to start businesses.
We are going to tell you why it’s a great time to start a business and how you can test the waters in 2 quick steps.
Why Start A Business Now?
When there is a downturn in the economy or something catastrophic is occurring, like a global pandemic, people are more motivated to make money. Often times the resources that you need to get your business up and running can be obtained at little or no cost.
For example, the US Small Business Association had grant monies available during the middle part of the pandemic. Check out the site nav.com which specializes in pairing small business with funding opportunities. This article, “Small Business Grants COVID-19 Relief: Where to Find Free Money in 2020” is a great place to start!
Being Online Is Hot!
If we have learned one this during this crisis, it’s that having an online business is a blessing! Think about it… How do you catch a fish? You bait your hook and throw it in the water where the fish are hanging out.
Restaurants have moved more to online ordering, delivery, and pickup. Education has moved to more of an online platform and parents are seeking resources to help.
Do you have an idea that might fit into this niche? Keep reading!
Is Starting A Business The Right Thing?
If you want to see what your fellow citizens are thinking, look no further than the data. This uptick (77%) in new business applications is astounding!
Have you heard of Uber, NerdWallet, WhatsApp, Venmo, or Kickstarted? They were all launched during the 2008 recession. NerdWallet has an estimated valuation of over $500 million!
We downloaded the data from the US Census Bureau and analyzed it for ourselves using Tableau Public. Just look at the trendline and see for yourself!
You can interact with the data by clicking on the map. The warmer the color, the more new businesses that have been registered to date.
For example, if you hover over our home state of Indiana, you” see that over 59,000 new businesses have been registered! You can download this data set for yourself to dive in a bit deeper.
US new business applications jumped 77% in Q3-2020
How to Start A Business
Before you go and fill out all of that paperwork and pay your registration fees, there are 2 steps you need to consider: Validate Your Idea and Talk to Potential Customers. And, we will be glad to schedule a no-obligation 30-minute call with you to listen to your idea and provide feedback.
Validating Your Idea
Just because you think you have a great idea, that in and of itself may not translate to success. The US Bureau of Labor Statistics reports that around 20% of startups fail within the first year. The 50:50 point is around their fifth year of existence.
One quick and inexpensive way to validate your business idea is to create an online presence with a landing page. Buy a small amount of social advertising where your ideal customer resides and see what type of response you receive.
If you’re unsure of your target audience, we wrote a quick article about Finding Your Audience. There you can register and download our worksheets.
Talk to Potential Customers
The best way to talk to a potential customer is to first establish a relationship. If they visit your landing page and request more information, then you have the opportunity to build that relationship.
Ask a question about why they are interested in your business. Don’t try to close the deal just yet. Inquire about what they do and what they need to be more successful.
The Chinese word for negotiation—tan pan—combines the characters meaning “to discuss” and “to judge.” From a Chinese perspective, negotiation exists primarily as a mechanism for building trust so that two parties can work together for the benefit of both. Trust is built through dialogue that lets each party judge or evaluate the partner and the partner’s capabilities and assess each other’s relative status. source: China Business Review
Make Sure You Have The Right Stuff
Nearly everyone wants to be their own boss. But there are other factors to consider like income stability and healthcare. One of the biggest factor to consider is how you view and handle failure.
Most people believe that the biggest barrier to starting your own business is time or money. But, the real truth is that most will not start their own business because they are afraid to fail.
Make sure you have the right stuff because how you view and handle failure is a tremendous indicator to success.
Veracity Technologies is Here to Help
If you are ready to start a business for yourself, then contact us. We will chat with you about your idea and give you feedback. This is a no-obligation meeting. Seriously! Book your meeting by sending us a Contact Request.
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