Amidst the global pandemic, rising unemployment, and a complete shutdown of the world economy, there has never been a better time to start your own business. Whether you are working from home or you have lost your job due to the shutdown, there is no dispute that most of us now have more free time and a lot less money. True grit will come from everyone as the world continues to fight for survival in this new normal.
Advantages of Starting a Business During the Lockdown
1. Problems become opportunities entrepreneurs can solve
Problems with the supply chain of medical supplies have been exposed as medical professionals suffer from a shortage of PPE during the pandemic. Workforce remote access to company documents, the cloud and internet security will continue to be important as we conform to the new normal.
2. Free Time
As mentioned earlier, work from home has given people additional free time to work on passion projects, and people laid off do not have much opportunity to find a new job during the lockdown.
3. Talent is seeking opportunity amidst joblessness
As companies retrench their workforce and unemployment continues to rise, talent is out searching for new work opportunities. Opportunities for promises of a better future may allow founders to team up with talented individuals to solve the world’s problems.
4. All recessions rebound hard
The world will reopen the economy before we know it. The Great 2008 Recession caused the S&P to dip at the lowest of 830 points in Feb 2009 and peaked Feb 2020 before the lockdown at around 3,000 points.
Companies that emerged from recessions
“Many of today’s unicorns have been founded or built during recessions or downturns – resource scarcity can be a source of creativity and pivoting” – Inka Mero, Founder and Managing Partner at Voima Ventures.
General Motors (1908) – 1907 Financial Panic
Microsoft (1975) – 1975 Oil embargo
Apple (1975) – 1975 Oil embargo
Slack (2009) – The Great Recession
WhatsApp (2009) - The Great Recession
Venmo (2009) – The Great Recession
Uber (2009) – The Great Recession
Square (2009) – The Great Recession
As the world rebounds from the economic hardships of the Great Lockdown, GFT is here to help with affordable accounting services. GFT’s corporate finance services team is here to help entrepreneurs plan and create a better future.