Starting a Business for the Post-Pandemic World

The world has changed. That is what everyone is saying as we are in the midst of a once in a generation global crisis. Change can be daunting. Whether you are a potential new business owner or someone who has been in the game for years, you knew how your industry operated before, and you at least had an idea of how to navigate within that system. Now you have to figure out a whole new way to play.

Change Is the Name of the Game

The pandemic has caused a massive change and forced many businesses to fold. However, companies that have been around for decades and make it through the crisis will recognize that change is nothing new when it comes to business. While some industries may face more frequent and drastic changes, every business needs to adapt sometimes.

Restaurants may seem like an industry that hasn’t faced much disruption overall. However, even they have to monitor the latest dietary trends. Then, of course, one of the largest shakeups came with the rise of fast food.

Some industries face change at a greater rate, but all industries change over time. Some of the most successful companies don’t just change how they operate within an industry but switch industries altogether. Many of the largest companies now operating today started out doing something completely different. Some companies that started out doing something entirely different include:

Nintendo – This video game manufacture began as a playing card company and also ran a taxi company, food company, TV network, and hotel chain.
Nokia – This popular mobile phone brand started as a paper mill.
Wrigley – One of the biggest chewing gum companies started out selling soap and baking powder.
Marriot Hotels – Began as a street-side root beer stand.
Samsung – This electronics king got started by exporting noodles and dried fish.
American Express – The credit card company that originally delivered parcels across the country.

The point is that businesses have to learn to adapt to survive and thrive. Sometimes a change in business comes from forced outside conditions, and other times it comes from inspiration from within. Inescapably, though, it always comes eventually. Starting a business in the current climate is a great way to prepare yourself for success because you can’t rely on following an already laid out way of doing things. You need to innovate immediately.

Filling a Gap or Flooding the Market?

If you are planning on creating a new business that you will hope to launch as the world opens back up again, it is important to recognize the market you will be entering.

Once the world returns to normal, some industries will operate in much the same way as they did before. However, others will operate in a vastly different fashion. There are also going to be a number of industries that don’t recover to pre-virus levels, while others will be bigger than ever before.

You need to figure out where your proposed business lies along these spectrums so that you can fully understand the risks of your endeavor.

Many businesses were forced to close down during the pandemic, but the industry need will return to pre-pandemic levels. That means there will be a lot of holes to be filled, and you could be stepping in at the perfect time to provide the service that people need. Many other services that boomed during the pandemic are likely to drop off dramatically as the disaster recedes.

Basically, opening a new restaurant where you have half the competition you would have had if you had opened your doors in 2019 will be a much safer bet than starting a business that sells medical masks.

The Importance of Insurance

One thing that the pandemic has certainly shown is the importance of insurance. Health insurance, cancellation insurance, and business insurance that covered disruption are three prominent insurance options that many people who had them were very grateful for once the pandemic hit. While hopefully, we will not face another crisis of this level anytime soon, these are still great safety nets to have.

Whenever you invest a lot of money in anything, like your business, home, car, wedding, or self, purchasing insurance is a good option. People planning to get married in early to mid-2020 who had to postpone may not have benefited from buying wedding liability insurance. However, if they bought wedding cancel or postponement insurance, they were certainly breathing a sigh of relief.

The same goes for business owners. Those who left business disruption insurance off their coverage plan were left out in the cold when forced to shutter their doors due to lockdowns.

The Digital Age Has Truly Grown Up

The world has been transitioning to digital more and more over the past few decades, and the pandemic pushed that movement forward even further. Many businesses who adopted a more digital approach with things like having employees work from home don’t plan to go back to the old way of doing things. Many former office jobs have switched to being fully remote and will stay that way while others will keep a partially remote aspect.

There are many benefits to having your employees work from home. Your good employees are often more productive because by cutting out their commute, they are less tired and more able to focus. At the same time, it is easier to identify your bad employees and demand improvement or part ways. You can also rent smaller offices or have no main office at all. Either option can save a lot of overhead costs.

Due to this and other factors, you may find that this is the perfect time to start your new business. With many industries, you won’t find yourself at a big disadvantage to your more experienced competitors, since they will be learning the new way of doing business right alongside you.