Starting a business can be daunting! We know there’s no ‘perfect’ time to start a business, so we’ve built a list of pros and cons to help you decide if starting a business this year is right for you.
Firstly, let's start with the pros. The ‘Global economy is set for fastest recession recovery in 80 years’ says the world bank - this is not only perfect for UK-based businesses but internationally - meaning it's even easier to expand should you wish to expand your business globally. The economy itself is said to be building back as a ‘recovery in global trade drives UK exports growth in our forecast, which will grow by 2.1% in 2021 and 10% in 2022’ (CBI, 2021).
Additionally, there are lots of loans available across the UK, ranging from covid relief funds for those who have already started their business so should you decide to start your business there are schemes in place! There are also plenty of start-ups and other related funds (171 schemes in total) for you and your business to utilise.
As a result of the pandemic, plenty of workers have adapted how and where they work and this adaptation has led to great new ideas that may have otherwise not been found! Many workers found that, due to working from home, for example, they had more time to themselves - allowing more time to feed into the expansion and finalisation of business ideas and plans!
Unfortunately, starting a business at any time is never 100% positive, and there are some cons that may affect your business ideas/plans for start-ups, expansion, and finalisation.
If your business idea surrounds the arts, there are (generally) fewer funding opportunities. Additionally, many art-related businesses had to apply for grants to support themselves during the pandemic, this was £880m worth of performing arts grant ring-fenced in the government’s £1.6bn coronavirus arts rescue package. Unfortunately, not every company received the financial help they required, not only in the arts but across many sectors. As a result, many companies shut down and many workers lost their jobs. Whilst industries such as the arts have gone under great adaptation, this was not enough for many.
Another consideration is the ongoing risk of new variants of Covid, such as Delta. In fact, The World Health Organization... is tracking 13 additional variants that originated in the U.S., Brazil, the Philippines, Indonesia, Colombia, and other nations. Whilst progress is being made through vaccinations and other procedures, no one can guarantee how this will protect all types of business, particularly if there was a further lockdown, for example.
Verdict. While many people reading this may find themselves in a position where they are working reduced hours or out of work altogether due to the impact of coronavirus, the opportunity to bring that business idea to life is one that should be seriously considered at this time. When you take into consideration the potential gaps in the market left by businesses that were not able to survive the economic impact of the pandemic now could be a good time to enter a marketplace as life begins to return to a more normal state.
If you are thinking about starting a business, either alone or with a partner or team, our outsourcing capabilities in key business areas such as HR, marketing, and project management could help you bring your business idea to life. Learn more about our variety of services. here.