With all the uncertainty in the world right now, you might think your clients are irrational to consider starting a business in 2020, but don’t be so sure. There are numerous examples of successful businesses that started during a recession, including Microsoft and Burger King. Here are four reasons why a recession can be a good time for your clients to start a business.
- Time of Innovation
Entrepreneurs are problem solvers, and, in a recession, problems abound. Consumers and businesses want solutions and that means opportunities for startups to solve.
- Consumers are Open to New Ideas
According to Forbes, there are five Covid-19 consumer habits that here to stay:
- Contactless delivery including pre-payment/drop-offs and self-pickup lockers.
- A cashless society. Mobile payments on the rise.
- Millions of people worldwide tried telemedicine for the first time during the crisis.
- Distance learning as schools turned to online classes.
- Consumers Responsive Needs
Consumers have been on an emotional rollercoaster throughout the pandemic. Their practical needs have not quite been met. And their emotional needs were at risk due to social distancing guidelines. Startup entrepreneurs should consider fulfilling the following key emotional needs for the post-COVID-19 consumer:
- Security: Consumers want to feel more secure in their everyday lives. As restrictions lift, uncertainty about “the new normal” and about the devastated economy will still reign.
- Health: Understanding, controlling, and improving their health will still be the top priority for many consumers.
4. Talent Remaining
According to a Robert Half survey, employees will require more telecommuting opportunities, a safe/social distanced work environment, less in-person contact and less business travel.