In March a lot of small businesses across the country were forced to close down amid the fear and spread of the coronavirus pandemic. While this isn’t great, it is not all gloom and doom since some of these businesses have resumed normal activities in recent times as the surge of the pandemic continues to go down. What then does this mean for new investors? Is investing in local businesses doomed from the start due to the effects of COVID-19?
The Rebuilding Society user experiences say otherwise, and a lot of feedbacks have shown that recession or hard times could be a good time to start a business for a number of reasons. Going by the fact that customer needs are the driving force for setting up new businesses, then, we could all agree businesses could still thrive in a time like this.
In essence, while it seems the business environment is hostile and heading towards recession right now, for creative and innovative entrepreneurs, now might be the right time to start their own businesses. While there are no certainties when it comes to business, not to talk of during a worldwide pandemic, here are a few reasons why investing in a small business right now might not be such a bad decision to make.
Loans are Available
It may seem unintuitive, but economic uncertainty creates an environment conducive to lend money. Interest rates are lower, which means loans are more affordable, and smart investors may use this opportunity to access the kinds of business loans they’ve always been after and use it to invest in a viable business opportunity that can address the various customers’ needs in a time like this.
There is Room for Providing for Necessities
The coronavirus has caused a very specific set of problems that serious startups may want to deal with and make a lot of profit in the process. Already, a new wave of innovators has stepped up to fill the gaps left by large companies in areas like local food deliveries, (when supermarkets can’t keep up with demand) and a host of other services. These innovations are creating new solutions, but the entrepreneurs are also making a huge load of profit from offering these services.
The Best Talents are Available
The sad fact about the pandemic is that many great people will lose their jobs. While this is bad news for them, it is good news for small businesses and startup, as they would be able to acquire top talents that wouldn’t have been available to them before now.
There is Less Competition
Many businesses will find themselves with less competition as competitors struggle to restart after a pandemic. For those who are able to innovate or borrow to weather the storm, this can be an advantage when they return to the market.
Power to Negotiate and Expand
If you have been looking at taking over or buying the assets of some firms in other to expand, this might be the right time for it. A lot of firms are in bad financial states and the values of their businesses have been badly hit. This means, now is the time to buy other businesses or their assets to expand your own.
If you are interested in becoming a business owner, now might just be the time to achieve that dream, especially if you are smart about how you go about it.