Startups Surge in Pandemic
Dec 08, 2020 by Roger Scherping
I recently read an article called “Corporate employees working from home are creating a surge in startups” by Gene Marks in The Guardian.
You can read the article here https://amp.theguardian.com/business/2020/nov/19/small-business-startups-corporate-employees-pandemic
People often say that a recession is a good time to start a business, but this article says that the current pandemic has created the perfect storm for young entrepreneurs. The millennial generation, who have been demanding more flexibility and independence from their employers for years, now find themselves with three important things.
First, they have acquired some valuable years of business experience which they are ready to put to use for themselves.
Second, they have money. Most of them are corporate employees and have escaped the layoffs that have hit hourly workers. They’re also saving more money than ever because there are less ways to spend it during the pandemic.
Third, and most important, working from home has given them time. Sure they’re working hard, toiling at home without their employer watching over them. But they are getting their work done and then using the time they save from improved efficiencies (and eliminated commute time) to start a side hustle that may provide extra income for the family, even if it never replaces their day job.
The result is 3.3 million new business applications have been filed this quarter in 2020, an increase of 27% over the same quarter last year. As an illustration of how this recession is different from the Great Recession, it’s even an increase of 83% over the same quarter in 2009!
So are you thinking about starting a business? Maybe you want to supplement your salary with a side hustle like graphic design work or accounting services. Or maybe you’re going to quit your corporate job completely and go out on your own, perhaps by purchasing a franchise.
Do you know that most people who start a new business do so without being able to answer these critical questions:
- Will my new venture make money?
- Will it pay me enough to let me quit my day job?
- How much do I need to charge for my services to make a profit?
- How much cash will I need to get started?
Well, we created the ProjectionSmart Startup Suite to help you get those answers. ProjectionSmart Startup is the easiest way to understand whether your new venture makes sense financially. You’ll find out if you can make money, how long it will take to cash flow, and how much startup cash you’ll need.
You don’t need a background in finance or accounting to use ProjectionSmart Startup. We walk you carefully through each aspect of your concept:
1. What are you going to sell and charge?
2. What are your overhead expenses?
3. What are your startup costs?
By leading you through these questions, Startup will help you take your concept from just an idea to one with the numbers to back you up and give you confidence that it will succeed financially.
Once the numbers make sense, it’s time to plan out your new business. Our Proof Plan is the easiest way to document your vision for your business. Like Startup, the Proof Plan will walk you through all of the aspects of your new business, making sure that you have carefully thought through all of its key aspects: money, marketing, and team.
By using the Startup Suite, you will have started with your nebulous new idea and taken the concept all the way down to the details. It will no longer be just a concept. It will be a solid business idea with a well written business plan and the numbers to support it. Then you’ll be ready to impress your spouse, banker, investor or just yourself that your new business makes sense.
The ProjectionSmart Startup Suite will give you the confidence to launch your new venture! Try it for free.