It is a popular time to launch a startup in America. It doesn’t feel like it should be that way, right? We have experienced a worldwide pandemic, political discord, economic uncertainty, and more in the past year. During the 2008-09 financial crisis, small business formation plummeted. Yet, the number of small business applications in the United States in 2020 tells a different story. In the third quarter of 2020 alone, there were more than 1.5 million new business applications—almost double the amount for the same period in 2019, according to the research firm McKinsey & Company.
If you have a business idea that you’re itching to set into motion, here are 4 reasons why I believe it’s a good time to launch your startup.
1. Expanded Customer Reach
According to the U.S. Census Bureau News, e-commerce surged by nearly 40% between the first quarter of 2020 and the first quarter of 2021. The pandemic has driven more people to online shopping, and the data makes it look like this trend will stick around. This means that business owners have the potential to reach a wider range of customers on a global scale. By utilizing digital marketing strategies like online ads and search engine optimization, the possibilities to build robust customer segments are expansive.
2. More Free and Cheap Services
The more innovative a startup is, the more unknowns that come with it. That’s why you’ll need access to educational, creative, marketing, and distribution tools. Canva is the primary design tool my graphic designer uses, and there’s a free or a paid option. If you need help with your email marketing, sites like ConvertKit are great. They provide free weekly teachings and a blog to help you grow your email list.
There are also a ton of free educational materials on the internet in regards to starting a business. If you want more nuanced assistance, you can join programs like WealthBuilders University for as little as $29.95 a month.
3. The Money Makes Sense
If you want a small business loan, interest rates are historically low and the Fed doesn’t plan to increase them over the next couple of years. Currently, the prime rate on SBA loans is 3.25% APR. The government has also frozen interest on student loans, stimulus checks have been distributed, and other organizations are being more lax about payments. If you have a little extra cash in your pocket from any of these things, it could be worth it to invest in your startup idea.
Bank loans aren’t your only option, either. In his article on Money Crashers, financial journalist Michael Lewis writes, “Today a person starting a new business has access to individual investors (sometimes called ‘angels’), venture capital funds created for the sole purpose of investing in new ideas and companies, public and private offerings to groups of investors, and government-subsidized debt through the Federal Government’s Small Business Administration programs.”
4. You’ve Been Thinking About It
If you’re still reading this, there is a good chance that you’ve been contemplating the idea of creating a startup. The pandemic gave many people more downtime and space to re-evaluate their plans and dreams. You can think about starting a business all you want, but you will have to take the plunge at some point! So, do not waste the creativity you’ve already put into your idea. Please comment below if there is any way I can encourage you on your entrepreneurial journey.