2020 led to the inception of a crisis that is unprecedented in recent history. However, for many, a crisis is also an opportunity that cannot be wasted. If the rapid rate of technological adoption and digital transformation is anything to go by, the market had a plethora of opportunities for a digital first business. Now, if you are an aspiring entrepreneur or a serial entrepreneur, is 2021 the right time to give your business idea a new lease of life?
Despite the uncertain nature of the current market, the show must go on. While many businesses do not have high expectations for 2021, for entrepreneurs, 2021 may just be the ideal year to get their business started. With insights from Forbes, let’s find out what 2021 has to offer for new businesses:
Conducive competitive landscape
2020 was a year that led to many companies shutting down, due to the pandemic-induced disruption. Whereas those that have managed to remain afloat were forced to re-invent themselves to the conditions in the new normal. Companies today, even start-ups, will have to fashion themselves as digital first organizations. The current environment is such that there is far less competition for entrepreneurs who are seeking a new niche. With the right fundamentals and less competition, a business in 2021 may just have the recipe for success.
Better market visibility
Today, we find that due to social distancing and remote-working conditions, more consumers are on connected devices, with online consumption breaking new records. In fact, e-commerce transactions have increased by 40 % in the new normal. Consumers prefer shopping from the comfort of their devices for even basic necessities. For new businesses, this means a potential access to a market without geographies. It also means that their digital marketing efforts will have more of an impact, vis-à-vis 2019, due to an increased reach and visibility.
Cost-effective business model
For a new business that does not have to deal with legacy systems or on-site hardware, 2021 confers many advantages. As an entrepreneur, with remote-work becoming the norm, you can take advantage of cloud computing and virtual environments to create an agile and digitally equipped business. Since many entrepreneurs have already conducted research in 2020, they are better equipped to deal with the conditions of the new normal. Especially since businesses and commerce are undergoing a paradigm shift with an emphasis on digital transformation. Entrepreneurs can take advantage of the shared economy and rising gig economy to reduce overheads, cut-down on-site expenses, and focus on business fundamentals in the digital age.
Wider pool of talent
Many people were left without jobs, due to the pandemic. This means that there is a larger pool of experienced and capable talent available now. Also, the attitude towards remote-working and gigs have changed significantly. With an emphasis on remote-work, you can hire talent without being restricted to geographies on a contract basis to build your business. With more people focussing on gigs in times of uncertainty, it is possible to hire a highly skilled workforce based on project outcomes. You also need not worry about purchasing expensive IT hardware or setups, as most remote-workers would have their own devices.
Individual spending habits and overall demand was significantly affected in 2020. Businesses shut down and people lost jobs, with many curbing spends to deal with the looming uncertainty. As 2021 sparks hopes of economic recovery and people and businesses acclimatize to new conditions: Pent-up demand is going to help businesses boom, like it is already happening in some parts of the world that have come out of lockdowns. Entrepreneurs can cash-in on this trend early by focussing on branding and customer needs.
To conclude, business and commerce has undergone a paradigm shift in terms of operations with the pandemic induced disruptions. There is an emphasis on digital transformation and many businesses are undergoing a transition. For entrepreneurs, who have a sound business strategy and fundamentals, 2021 is a great year to start their business. After all, every crisis is also an opportunity to succeed and re-invent.