First and foremost I understand that we are all struggling to some degree and some have it much worse than others and I truly believe we should do our best to help everyone get through this. This means family and businesses are going to need help and we all need to step up in our communities. With that said there are some harsh truths about what is ahead of us. Businesses are going to close. Many already have. Maybe they were spread thin, maybe they were in the middle of expansion when this hit, or maybe they were still building traction but not yet profitable. There are lots of reasons businesses are not going to make it through this shutdown and that means when things to get turned back on there are going to be lots of holes in several industries and in several areas, but this doesn’t mean a wide-open market.
In addition to all these businesses closing, there are a lot of people who are now out of work looking for ways to use their skill sets. There are going to be lots of people deciding to work for themselves and fill these industry holes. So the question becomes, “Is it time for you to start a business?” We at Lusca Digital would like to enthusiastically answer… maybe.
I know that is not a strong endorsment but there are things to think about.
- How unique is your skillset?
- How big is the addressable market?
- Do you have the funds to get started and how much is that?
- How long until you are profitable?
- Will this make you happy?
How unique is your skillset? You don’t have to be the only person doing the business but you want to make sure you are not over saturating a market. The good news (and well bad news) is that most industries are going to be hurting from this so there are bound to be gaps where you can fill in. You just also need to think about your market and think through how COVID-19 is going to affect it in the future. For instance, I don’t think a “hug from a stranger” business is going to do well for a while.
How big is the addressable market? How much money can you potentially make off of this? Hopefully, your experience will help you understand how many people/ businesses purchase your products, cost of your products and the potential revenue opportunity. This will help with number 4.
Do you have the funds to get started and how much is that? There are going to be start-up costs. You should figure those out and make sure it is something you can carry for a while. These aren’t huge costs but something to think about. For instance, most new businesses are going to make sure they have clean branding, a website, business cards, and professional email address tied to your domain. This is a great starting point for almost any business.
How long until you are profitable? Think about what you can charge, what are your margins, and at what point are you profitable. Can you live off of this? How can you grow your customer base faster? These could include paid advertising on Google or Facebook, or maybe even hiring a sales professional who is out there getting you more business. These are great ways to grow faster but can you afford them? Can you afford not to?
Will this make you happy? I think this important because whether your motivation is philanthropic, world-changing technology, or making a boat ton of money, you need to think about the business you are working on and if you will be happy doing it. Entrepreneurship is a grind. It takes time to build, beg, get defeated, and get back up and try again every day. Pick something you are passionate about… even if your passion is making a ton of money. That passion for money better be able to push you through those bad days.
The long story short on this is yes. This is a great time to start a business. It is going to be a hard road (FYI, it always is) but there is a unique situation here where people/ businesses are going to have needs and people are going to have to come up with unique solutions. We are essentially doing a reset on the economy and the door is wide open if you have what it takes, and a good plan. We would love to help you get started so drop us a line.