The initial planning is done. You decided that 2020 was going to be the year to finally start your business, but before you could even get your business off the ground, there was a wrench in your well-thought-out plans: COVID-19. With so many businesses on the brink of bankruptcy and struggling through this unprecedented time, how can you possibly go forward with your plans?
COVID-19 does not have to halt your initial plans; they may just need a little tweaking to fit our “new normal.” Let’s discuss businesses that are succeeding during this pandemic and how subscription commerce may be a way to succeed. We’ll also discuss the cost of starting a business, how to accrue the money you need to get things going, and how, once you take that first step, how you can maintain and even increase sales during this time.
Businesses to Consider
Is the business you were initially intending to open one that has suffered through the pandemic? Although many businesses have been harmed at the hands of COVID-19, others have thrived, particularly those businesses that help customers with their social distancing. Some businesses to consider include the following:
Delivery services. Due to stay-at-home orders and many people being afraid of venturing outside, demand for delivery services is very high, particularly in food delivery and retail. Cleaning services. Because of COVID-19 fears, businesses that clean and sanitize homes, offices, and restaurants are now in high demand. Yard care and landscaping services. Staying at home has given people more time to work in their yards, so the demand for yard care companies has dramatically increased. Mask makers. While not in demand before this year, making masks is now an opportunity for new entrepreneurs as the demand for masks amid the pandemic remains high. Tutoring businesses. With so many students learning at home, many parents have become concerned that their children will fall behind. This has ignited the demand for private tutors.
So if your original business ideas have fallen through, look into these possibilities. There are still opportunities available if you’re willing to bend a little bit.
What About Subscription Commerce?
Another thing to consider as you launch your new business is whether your business, whether it be a product or a service, is something you can offer a subscription service to. While you may not be ready to hit the big leagues just yet, business-to-business (B2B) subscription services have seen rapid growth. Subscriptions for access to B2B services and software are expected to see a Compound Annual Growth Rate (CAGR) of 24% over the next four years.
Consumer-centered subscription services have also been strong in the COVID-19 economy, with over 50% of subscriptions not seeing a significant impact from current events, and another 23% finding that business is actually increasing. Only 13% have experienced a slowdown, particularly in the areas of travel and hospitality or gym memberships. Areas that have experienced a significant increase in subscription memberships include the following:
Video streaming E-learning Digital News Online collaboration tools Video conferencing
Based on these findings, it may be worth your while to add a subscription service to your business model.
Now that you know what type of business you want to start, think about the cost involved. Calculate up-front costs as well as monthly expensesContinue reading