Should you Start a Business During a Pandemic?
For some companies, COVID-19 lockdowns have served as a catalyst for growth
Starting a business in the midst of a global health crisis may seem like a terrible idea. And in many cases, you’d probably be right. On the other hand, a number of businesses have had great success during the COVID-19 pandemic. In this article, we’ll focus on those companies and industries that have performed shockingly well during the COVID-19 pandemic, discuss what we can learn from their success, and review some thoughts to consider if you’re launching a business of your own in the near future. So without further ado, lets get into it.
In recent months, businesses across the country have been struggling to survive, and have been going out of business in large numbers. The situation deteriorated to the point that the federal government decided to issue $350 million in loans to help small businesses weather the storm. On the whole, brick-and-mortar stores, restaurants, and tourism-dependent businesses are suffering greatly under COVID-driven stay-at-home orders. However, a number of companies have been thriving during this same period.
Take Etsy for example. An online marketplace for selling bespoke crafts, Etsy has seen an 80% increase in online sales since March 2020*. Online education is also thriving. White Hat Jr., an online platform teaching codeing to children, has seen growth of 200 – 250% since the lockdown began**. Other virtual and online-based service providers in the healthcare industry are also thriving. Perhaps not surprisingly, the common thread running through these companies is their exclusive use of online and virtual platforms to deliver products and services.
So, what lessons should we glean from these success stories? Will launching an online services company during a global pandemic guarantee triple-digit growth? Certainly not. Instead, these figures should encourage people who had pre-COVID plans to launch an online business to move forward with the dream rather than putting it on ice. Even during a pandemic, there are opportunities for success.
If you’re thinking about launching an all-virtual company, here are some issues to consider:
· Consider whether you should have a membership agreement laying out rules that must be followed for users of your online platform or service.
· Consider having a licensing agreement drafted if you are providing materials of your own creation for use by customers online.
· Make sure you fully understand your rights and obligations respecting any conversations or videoconferences taking place on your platform.
To help small businesses and entrepreneurs weather the COVID-19 storm, our firm offers discounts and other individually tailored payment options to business clients. If you’re thinking about starting a business in or around Portland, Oregon or are interested in learning more about our business services and special pricing, contact us.
*As reported by Minnesota Public Radio https://www.marketplace.org/
**As reported by India Times https://economictimes.indiatimes.com/