Why start a business need in 2020, not in 2019.

According to a study conducted in 2009 by the Foundation Ewing Marion Kaufman, 57% of the Fortune 500 were founded during a recession or market with falling trend.

Advantage 2020 – a clean sheet and the lack of other players on the field. This year the competition is weak.

If you start from the fact that the most successful companies were created during difficult economic periods, the General crisis and an epidemic in no way can be appropriate time for reaching entrepreneurial heights.

"Bad time to create a company" generally refers to low consumer demand and limited access to financing, but it is mostly a problem for startups that have already entered the market. In the end, they must cope with the decline.

No cost, no tedious layoffs and without banks, encouraging you to reduce credit limit, entrepreneurs and start-up companies can now focus on creating a great new product or service. Start with a clean sheet - it's your advantage in 2020, as well as your ticket to a happy future.

The ingredients of success

In the world of startups there is no guaranteed formula for success, but you'll need at least four components, which will help to avoid failure: a good idea, a solid team, sufficient funding, and the ability to search for customers.

Here's how it looks in 2020.

1. "Painkillers" solutions

Great idea or solve a real, serious problem, or make life much easier for a person. Think of your product as about painkillers: people need them and are willing to pay for it. In 2020 there are a number of problems in the "pain reliever", which will develop into entrepreneurial opportunities.

Problems create opportunities, and 2020 will mark the most problematic year of age. Not coincidentally, companies like Uber and Airbnb were founded and flourished after the last financial crisis. They decided the real problems of people ("I need more money") and made life easier ("I want a cheap and simple option") at the right time.

2. The recession and the search for talent

Finding great employees has historically been one of the bottlenecks for startups. This is the main reason for the creation of the company in 2020: for the first time in the last five years, you will receive access to a huge number of amazing talents. In 2019, the company had to lean backward to attract great people. Outstanding staff members were spoiled by illegal offers of competing companies. This has led to the increase of wages and the frequency of change of jobs.

Today, this pandemic has forced millions of skilled, hardworking employees to remain in the care of themselves. Some of them may take matters into their own hands and create a startup. Others will be happy to work for the great Creator.

3. Fundraising

Now you might be thinking, "that Sounds all well and good, but in 2020 it will be impossible to find an investor".

The last five years was the false environment of fundraising. It seemed that any freshman could "raise" $ 1 million if he just nicely presented his idea, perfectly Packed in 20 PowerPoint slides.

Those days are probably gone, but venture capitalists and angel investors are still here and they still have money to invest. Of course, in 2020 it will be more difficult to raise funds compared to the year 2019, but conditions the funding 2020 will also benefit from outstanding founders.

Use the temporary lack of capital in their own interests and develop a culture of thrift, not waste. No flights in business class or office chairs for 70,000 rubles. The stricter the framework, the higher the quality of your work.

4. Finding customers

As a founder, your job in the first year is to create something like 100 people, and not something like 10000 people. If you will do a good job on creating something valuable, you will find these 100 people, regardless of whether it's 2020, 2009 or 2001.

Take advantage of the low prices for advertising. If you do offer something that people need, now is the best time to attract users for "thank you". With shrinking marketing budgets to almost zero in many cases, you can buy inexpensive advertising resources, especially in social networks.

For those who still dare

The next couple of years the recession will be your test of strength. Sale which you make, be heavy and fundraising to be slow and cumbersome, especially if you just entered the world of entrepreneurs. You will get scars. But these scars will do you only good.
Success!

Sartakova Xenia

Tags: assessment , finances , coronavirus