The great pandemic of 2020 has inadvertently led to recessions in most markets around the world which has also decreased overall consumer spending. While some businesses were forced to cut corners, others have had to completely shut doors. 

The markets are definitely improving and they are in a better condition than they were in the first half of the year, but many individuals are still unsure about starting a new business during a pandemic when countries are dealing with the worst recession of the decade. 

Though it may seem scary, a pandemic is actually not a bad time to start a new business. If we look at the biggest companies that have scaled rapidly in the last 10 years, many of them were founded during the 2008-2009 recession including WhatsApp, Uber, Slack, Pinterest, and Square. Going further back, companies like HP, General Motors, and Microsoft were also founded during recessions.

The global pandemic has undoubtedly been damaging to the world in many ways but it definitely cannot curb the enthusiasm of the entrepreneurial spirit.

Here are some of the many reasons why pandemic is a good time to start a new business:

Startups have advantage over large enterprises

Startups are agile and lean in nature which makes them more adept to navigate through the rapidly changing economy. During economic downturns, it is the startups that usually end up getting ahead of the enterprises. 

This is also the reason why many startups founded during recessions ended up being immensely successful. Not only do startups have access to a better pool of talent, but when the pandemic and recession finally comes to an end, there will be absolutely nothing more impressive to an investor than a startup that has survived and thrived even during the most difficult times. 

We don’t know when the recession or the pandemic will end. But if you can create a company that is valuable to customers even in an environment where spending is decreasing and unemployment is rising, your company will definitely be stronger when the markets start to improve.

A large pool of talented people who are readily looking for work

Unemployment is at an all-time high and it has affected people in every sector. Even the largest enterprises and the most heavily funded companies have had to make budget cuts and lay people off just to survive through this tumultuous year. But that means, there is now a large pool of highly qualified and talented individuals that are looking for their next big job. 

Moreover, the shift to remote working this year is expected to stay as more and more companies are set to go fully remote, even after the pandemic is over. That means, your business will have the opportunity to hire talented individuals without any location limitations. 

More room for negotiation on fixed costs

Kickstarting a new business requires you to spend money on a lot of upfront expenses even before your business generates its first revenue. These are fixed costs that can include servers, company website setup, SaaS tools, office space, and more. But during a pandemic, as the requirement for many has declined considerably, you will find more room for negotiation even on the fixed costs. 

Real estate is considerably cheaper and many landlords are willing to give office space at reduced rent along with attractive deals like office renovations and flexible lease terms. Similarly, many B2B SaaS companies also offered big discounts this year to help businesses struggling with the pandemic. All of these combined decrease the total cost of starting a business and allow founders to in turn use their resources for product planning and hiring purposes instead. 

Consumers are more willing to try out new products 

The pandemic has fundamentally changed the life of many people and it is reflecting in the other areas as well. According to a survey, one in four customer tried a new brand during the pandemic.  

40 percent of people say they are more mindful of where they spend their money now and 60 percent have completely changed their shopping behavior. This makes the pandemic a perfect time to launch a new brand or product category because it’s easier to persuade your target customers to try out new products or completely switch brands. 

More importantly, it will also decrease the overall customer acquisition costs and allow you to acquire more customers at decreased costs while saving time.

Find the right mentor to guide you through these unprecedented times

Starting a new business can be a struggle in itself, but starting a new business in the middle of a pandemic is like venturing into uncharted waters. Instead of going about it on your own, you can take help from mentors who have been there in your position before and survived through recessions. 

Jupiter Business Mentors can help you connect with the right mentors who can guide you on in setting up your business even during the most difficult and strenuous market conditions. With 35+ mentors spread across dozens of industries, finding a mentor is now just as easy as clicking a few buttons. 

Take a look at how Jupiter Business Mentors can help you and get 90 minutes of free sessions with any six mentors on the platform.