Pandemic business has been growing. Despite the havoc that Coronavirus has wreaked on our economy, people are still launching new businesses. I’ve been working with a variety of new business owners in 2020 who have taken this strange time this year to launch their businesses. This past weekend, the Wall Street Journal had an article featuring a variety of new businesses that have been started during the pandemic. Each of the businesses was created out of either necessity or opportunity, two common motivating factors for folks starting a business. With many people out of work, now may be a good time for you to consider starting a pandemic business.
Pandemic Business Stats
According to the Wall Street Journal, the rate of Americans starting new businesses has grown to its highest in more than a decade. Fueled by that demand,
- Applications for EIN numbers (tax identification for businesses) have passed 3.2 million so far this year;
- New filings by businesses with employees rose to 1.1 million (the highest since 2007); and
- Startup businesses typically account for about 20% of job creation.
As John Haltiwanger, an economist at the University of Maryland put it,
This pandemic is actually inducing a surge in employer business startups that takes us back to the days before the decline in the Great Recession.
Unfortunately, despite all this good news, the old statistic that is commonly quoted still holds true. More than half of these businesses won’t last for five years.
Market for New Businesses
The market to launch a new business has changed over 2020. One of the primary drivers of the market these days is the void created by all the businesses that have closed during the pandemic. There are many market sectors where a new business can move in and fill the void left behind. This is also true because spending is slowly picking back up as we emerge from earlier lockdowns in 2020. And in 2020, Americans began to save again, leaving more funding options for people who are looking to start a new business.
What Kind of Pandemic Business Should I Choose?
The options are seemingly endless these days. As the economy reopens and many businesses are pivoting, there are plenty of areas that you can consider. The Wall Street Journal focused on eight people:
- Baker – Lela’s Bakery and Coffeehouse
- App Creator – OKZoomer
- Online Fitness – kudoose
- Mask Maker – Jellybean Boutique
- Bike Mechanic – Backyard Bicycles
- Chef – Pasta Packs
- Bookseller
- Therapist
How Do I Get Started?
There are plenty of resources online to help you get started. I’ve long advocated for putting together a strong team of professional advisors to assist you:
- Computer Professional
- Accountant
- Lawyer
- Mentor in your field
Working with your team, you can get your business off the ground and running in no time.
You May Also Like
- Virtual Startup Investing: Raising Money For Your Business In 2020
- 6 Tips For Easing Into Entrepreneurship
- Entrepreneur Thinking: Five Principles To Consider
- 5 Strategies For Your Business To Adapt, Pivot Or Stay The Course
- Turning That Gig Economy Job Into A Full-Time Job
Next Steps
If you are thinking of starting a business or already started your business and want to make sure your legal documents are in order, give me a call and we can discuss the process and what documents would be best tailored for your company – (877) AMAYERS.
