In the midst of the ongoing pandemic, it may seem counterintuitive to launch a new business. When times are “normal,” starting a company comes with dozens of uncertainties and risks. However, with daily life still being relatively unpredictable due to COVID-19, these inherent risks seem multiplied.
If you’ve been thinking about becoming an entrepreneur but have delayed your plans due to the pandemic, it may be time to rethink your strategy. Believe it or not, now could be the best time to open your brick-and-mortar location or your online store. Want proof? BusinessLoad shares four reasons that prove 2021 is the best time to unveil your new business.
Interest rates on loans are low
Last year, as a result of the pandemic, interest rates on loans reached lows that had not been available for a while. From mortgages to business loans, you can borrow money on the cheap. Analysts agree that this trend is likely to remain through the end of 2021.
On average, the interest rate on commercial loans can go as high as 7% for qualified individuals. In 2021, one quick comparison of today’s major banks shows rates between 3%-4%. This includes secured business loans, financing for commercial real estate, equipment loans, and beyond. If you are looking to pay as little as possible to finance your company, now is the time to do so.
Businesses are selling used equipment at bargain prices
One unfortunate aspect of the pandemic has been the thousands of permanent closures that have occurred nationwide. Establishments across industries have had to shut their doors and sell their equipment due to the financial losses they sustained.
If you plan to have a physical store, restaurant, or office, be sure to check local online boards for used equipment. The unexpected and sudden nature of many of these closures has forced business owners to sell their equipment for bargain prices. Rather than purchasing all new items, buying used can help individuals within your own community.
Costs on many things are flexible and negotiable
As the economy continues to recover, prices on all kinds of goods and services will continue to be negotiable. In the scope of history, it is quite rare to have prices as flexible as they are now.
And don’t worry if you aren’t the type to ask for a discount. Vendors and service providers — many who are also new small business owners — are offering special promotions for new clients. Find the best deals on what you need by asking for recommendations, and by working with local entrepreneurs. Among those who are brand new to business ownership, you may even be able to exchange services with one another as payment.
Others have succeeded under similar conditions
Surprisingly, plenty of successful companies got their start when the economy wasn’t in a great place. According to one source, “57% of Fortune 500 companies have been founded in a recession or bear market.” During these downturns, some of today’s biggest companies (including Uber, Disney, and Microsoft) were founded.
Uncertain times shouldn’t discourage you from starting a business for this reason alone. This figure can actually serve as motivation to help you start your entrepreneurial journey. Statistics show that you may be more likely to succeed now than you would in a few years time.
Steps that you can take to succeed
Of course, it is still advantageous to take every step possible to succeed. While there are dozens of reasons to go ahead with your plans this year, mitigating risks should be one of your top priorities.
First, create a plan to make the most of your startup capital. On top of buying used equipment and negotiating service prices, don’t spend money frivolously. Since the unexpected can (and usually does) happen, have funds saved for emergency expenses.
Also, if your reservations about starting a business in 2021 persist, you can move your entrepreneurial dreams forward by going back to school for a business degree. Enrolling in an online MBA program provides you with flexibility, and helps develop your knowledge of important business concepts — including strategy, management, leadership, self-awareness, and self-assessment.
The decision to open for business this year will ultimately be yours. Although it is necessary to consider your individual circumstances, there is concrete evidence showing that now is an excellent time to become a first-time entrepreneur.