Why now could be a good time to grow a new online business.
The current Coronavirus pandemic will change the way businesses operate in the future. From the re-thinking of supply chains to the future attitude towards globalisation, there are choices ahead for many companies that they may not yet be fully prepared to take. The outcome of this forced change could be an opportunity for entrepreneurs with an idea for a brand or online business to launch or grow in 2020.
Here are a few reasons why we think this could be a great time to start.
More established companies in your space may be concerned about reduced revenue, furlough schemes, and CBILS, (Coronavirus Business Interruption Loan Scheme) applications to stay afloat. These distractions could allow you a head start on the competition when the landscape inevitably starts to recover. Open an Amazon seller account, start developing your Shopify store, use the fact that you have little or no overheads to your advantage to put yourself in a position to grow. As other companies in your space fall by the wayside, there will undoubtedly be less competition to contend with over the next few years.
Reduced Marketing Costs
One of your most significant expenses is likely to be your marketing budget. There is evidence to suggest that ad rates have dropped since the outbreak of COVID-19 as companies start to cut back on their overheads. Indeed, many marketers think that COVID-19 will be worse for their industry than the 2008 financial crisis. In broad terms, this drop in demand is an opportunity for brand building at a reduced cost. A common marketing mistake is that when times are hard, advertising budgets are the first ‘non-essential’ to be slashed. An alternative view could be that this is the perfect opportunity to inform the widest possible relevant audience about the great product or service you have to offer. All with the benefit of fewer distracting and competing voices.
Think Different. While being one of the most successful marketing slogans of the last 25 years, this is still as true as ever. As a small company, you can be nimble, diversify quickly and adapt to the changing landscape more rapidly, and with potentially better results than a larger, more established company. Use this to your advantage to adapt to new trends and changes in the marketplace. As an example, Trader Joes began life in the recession of 1958. Founder Joe Coulombe saw a gap in the market providing global foods to consumers in the US, something that was not very prevalent at the time, and of course Microsoft, started by Bill Gates and Paul Allen in 1975 during a 16-month recession in the USA caused by a global oil crisis in 1973. Currently the 16th largest public company in the world.
Risk & Reward
In summary, your business is not going to succeed without taking a risk. Of course, starting or scaling a company will always be incredibly challenging and present many obstacles along the way, but world issues aside, when will this not be the case? Part of being an entrepreneur is about tackling these challenges and forging a path where others might not see a way forward. So go for it, and of course here at PICOM, we have a team of talented and skilled e-commerce and brand experts ready to help you on your journey.