Businesses and economies throughout the world have been devastated by the spread of the coronavirus. We are currently in the greatest recession since records started in the United Kingdom, and the World Bank predicts a worldwide economic decline of 5.2% in 2020.
It may be a difficult moment to contemplate launching a new company as many long-standing enterprises close and high-street brands go bankrupt.
Identifying market gaps
During uncertainty, we often discover difficulties and concerns that need immediate attention. In recent months, we noticed how many businesses reacted to the need for protective equipment, such as masks and hand sanitiser, and capitalised on this strong customer demand.
As we go through “new normal,” gaps in the marketplace will begin to develop. If you can see such holes and act to close them, you’ll have a leg up on the competition.
A nimble and agile company
You may have greater freedom than your rivals as a young firm with low outgoings and low financial overheads. You may already be in a better, more elegant position than others if you operate online rather than having a real office site and the costs that come with it.
During a recession, many businesses and consumers are eager to cut costs, so if your service or product can save them money while still being equal to – or better than – what they already have, you have a strong chance of getting their business.
You must understand what your rivals are up to and how much they’re charging. How do you set yourself out from the crowd? You should also consider doing a break-even analysis and calculating your profit margins to ensure that you have the flexibility to adjust pricing as required.
Make use of a large pool of talent.
The coronavirus outbreak has significantly affected people’s work, as we’ve seen in the UK. As many businesses transition away from the government’s furlough programme, redundancies and layoffs will continue to be a problem. In other words, you have a talent pool ready and willing to help you grow your business. If you know you’ll need to make some critical strategic hires to achieve your company goals, now is the time to do so.
Creativity is essential.
Innovating is one of the most prevalent characteristics of some of the most successful small enterprises. Businesses that place collaboration and creativity at the centre of their cultures are more likely to produce new ideas that result in product and process improvements and ultimately drive their growth. We simply have to go back to the previous recession to see how firms took advantage of innovation. Both Uber and WhatsApp were founded in 2009, and look where they are today.
The ability of a company to withstand adversity.
Finally, starting a firm during a recession is a sure-fire strategy to create a more resilient, lean, and efficient organisation. The habits a company develops during a downturn usually carried through into more prosperous times, making it more resilient to subsequent storms.
There are four legal actions you must follow.
So you’ve chosen to go for it and pursue your entrepreneurial dreams, but establishing a new company might seem like a logistical nightmare with an endless list of things to perform, but it doesn’t have to be.
It’s important considering the legal actions you’ll need to take to insure your company gets off to the greatest possible start.
Think about the company’s structure.
Based whether you’re a plc, a sole proprietor, a partnerships, or an LLP, you may set up your new business in a variety of ways.. Think about the optimal structure for your company today and in the future.
Make sure your business terms are in order.
This is effectively your customer’s contract with you. Terms of business are crucial for identifying what your company is obligated to deliver, ensuring that your company is paid, and minimising your company’s responsibility if anything goes wrong.
Assistance to any employee
It’s critical to have an employee statement of terms in place if you’ve hired employees to assist you in expanding your company. Both parties are made aware of their duties as a result of this process. A corporate handbook outlines different regulations and best practices that should reduce the number of possible lawsuits filed against the firm if followed by you and your employees.
Obtain insurance protection
If anything unexpected occurs in your company and you’re not insured, there are financial and legal ramifications: you might be breaking the law and facing fines. As a result, ensure you have enough insurance, including professional indemnity, employer liability, building and contents coverage, fleet insurance for company cars, and credit insurance to guard against non-payment. It’s a good idea to hire an insurance broker to help you with this.