COVID 19 pandemic has just ended. The time during pandemic was harsh for business owners. But now, during the post-pandemic period, starting a business is a good way to make money.
Pandemics have an impact on prices of all goods and services which leads to companies having to raise their prices. But by starting your company now, during this period, you can take advantage of this impact and increase your profit margin. As long as you keep your costs low, start with products that are easy to produce (that is why e-commerce businesses are so successful), and have supply available for when people need them again, then your company’s chances of success would improve.
Our world has already seen the number of pandemics increasing. In the late 1800s, researchers started to discover new diseases and classify them as “pandemics.” Since then, there has been a lot of research and analysis done on pandemics and they happen more frequently than before.
At the same time, starting your own business is getting easier. The reason for that is that technology is advancing at a rapid pace which allows businesses to start with little capital needed. For example, you can set up an online store in far less than 24 hours with a few clicks of your mouse and start selling as soon as possible without having to worry about inventory.
During recession people do not invest as much money in new businesses and celebrities such as Warren Buffett even believe that recession is the best time to start a business. I also recommend that you start now; your chances of succeeding would be greater and if you succeed, you would have money to invest in your business or to pay off your debts.
Advantages of starting a Business after a pandemic:
1. A reduced demand for your product.11. You will be able to quickly adapt existing products/business models in response to the crisis as most stores are doing, providing solutions where one could not have been purchased prior and circumventing government regulation in some areas if their regulations impede response time; just ask General Electric and Wal-Mart how they do business during a crisis.
2. Possibly increased interest in your product as people are desperate for solutions to their problems.
3. People will be willing to buy from someone they trust in a time of need.
4. New and unique business models can emerge as the population resets expectations of what is possible; consumerism defaults back to survival mode, but with a sense of solidarity and empathetic community that formed during crisis.
5. Opportunity cost: you may be able to get an inheritance or even get paid if you start a business before the epidemic begins.
6. It may be easier to start a new business (and take the risk of faith) after a crisis, as there is more uncertainty … meaning fewer can hold you to certain standards and expect you to succeed.
7. You are not bound by expectations of how the government will respond to individual needs, because they have been preoccupied with pandemics in the past and have fallen behind in response; they are under staffed and ill equipped.
8. Your time is negotiable (as it is not spent with the government bureaucracy), giving you more freedom to dedicate your efforts towards profits and other ventures (food, medicine etc).
9. Increased value of assets. You can potentially be worth millions after a disaster, not only for the physical value of your product, but for your business model and how well you answer to consumers’ needs.
10. Taking action now may cause you to gain access to resources you may never have had before; it may allow you to help and provide solutions that the government cannot or will not commit to.
The Spanish Flu epidemic of 1918, which killed somewhere between 50 and 100 million people worldwide (1% of the global population) created a boom market for masks worldwide helping mask manufacturers to gain additional profits while also ensuring their survival as they protected others from contracting the flu.
Some things to consider before starting a business right after a pandemic
- Some ideas of what you are going to sell
- The amount of money you need (if any) to start producing
- How pandemic has affected your business field and how you would deal with it
- What you think people will do and if they will buy your products (if they’re sold)
- The importance of having other business ideas already in place, even if you are only going to start one business at the moment
Business owners often tend to think they can guess what the customer wants. And in some cases that works out well, but there are a lot of examples when businesses fail because they were dependent on the customer. People are not going to buy what you think is good. It needs to be in demand and there has to be enough demand for you to sell it. You can never be sure how much demand will exist for your product or service until you try selling it and that’s why you should have other sources of revenue, even if it’s just a little bit of money so that when you do succeed with one business idea, then you already have another one ready.
While a pandemic can be profitable for your business, it can also cause major problems. For example, a weak economy combined with a pandemic could kill your business. So you need to prepare for that even if you start the business right after a pandemic.
Post-pandemic period is not the time you need to take risks. Make sure you test your market and research it as much as possible before jumping into it and making a big commitment. Don’t just assume that people would buy your product just because they’re so desperate.
But in overall, starting a business after a pandemic could bring you success and make you rich. You need to have an idea of what they want beforehand and adjust your business plan accordingly. Also, most importantly, keep in mind that your success depends on the market and changes in the market, so you need to always be prepared for failure. Learn about the Updated 3 Ps in Business
Bonus tip: If your business is starting to get bigger, then you might want to start measuring how much return on investment you are getting from this business. This can help decide what steps your business should take next from here.