In times of such black swan event as pandemic and all the hard times that comes along with it, amidst all, one will have to find the courage to launch a new business. There will be bad times and good times but there is never a wrong time when you want to start your own business, your business would make its way on its own under the challenging times.
You might have to deal with the initial hiccups, especially when there is a lot of competition going on around the market. Hence, instead of waiting for the right time, your Pvt Ltd company should make the right time to dive into the ocean of entrepreneurship.
One of the crucial aspects right now is the environment that our economy provides to flourishing entrepreneurs and business owners. Interest rates are low in comparison to the previous decade. The labor market is flooded with job-seekers. This can even provide more employment to the youth. WFH (work from home) has opened up the doors for youth to choose, where they want to work. As pandemic has rammed heavily to major industries, there is a chance for entrepreneurs who are shrewd and astute to look out for new solutions and inventions to deal with current challenges.
As we made our way to 2021, past trends that have been following would persist to grow further this year more rapidly. As many scientists and biologists have been burning their midnight oil in search of an efficient COVID vaccine, once you overcome this stage, there will be an expected surge in numbers of tourists, sporting events, concerts, and crowd thronged in public malls and restaurants. Along with that, remote working and leaner workforce would continue for quite some time, that’s why entrepreneurs should try to capitalize on these opportunities.
Whether you are planning to launch a new business or a product in foreseeable future, there are 3 trends that you should keep close eyes on in 2021.
Surge of Remote Wellness and At-Home Health Products.
Health and wellness related product demand have been skyrocketing due to the ongoing pandemic and would likely to persist as well. As you might have seen many entrepreneurs across the industries; at-home genetic illness analysis, supplements, home fitness, testing so on and so forth. All of these mentioned businesses’ revenue have spiked rapidly in the last quarter or so. as we should all expect that this growth would likely to diminish a bit when the COVID-19 vaccine comes into action. This growth might resuscitate once again as well.
For instance, in the at-home fitness market, the selling of weight plates and dumbbells on eBay has been soared around 1500% this year in comparison to the previous one. Private-seller minerals and vitamin supplement sales have also been roared to 1286% in comparison to the previous one. As per CNBC and Bain & company which is a consulting firm in May that, ‘merely 3-4% of grocery spending was online prior to the emergence of the virus in the U.S., but that spiked to 10-15% later’.
Pandemic has taught us that these types of activities can be done at home such as going to the gym or grocery shop etc. We cannot expect that people will not leave their houses once we get rid of the virus but many people have found it more convenient for them to be in a four-walled room.
Exponential Rise of E-commerce
E-commerce is becoming one of the most preferred ways for entrepreneurs to launch their products and business. From the testing perspective, it provides a platform for engagement and information can be garnered from online customers and these kinds of similar things cannot be done when things are operated on bricks and mortar basis. Google and Facebook offer the easiest way to marketing to a wide range of customers and also end up leading to the highest margins because you can engage with your customers directly on your own, as opposed to physical form.
Businesses must have as much control over a shopping experience as possible by computing taxation electronically and businesses opting for online GST return filing. We should try not to entangle ourselves with third-party E-commerce sites with the inclusion of Amazon as well. Amazon was leading with 95% of E-commerce sales at Hydros, a year ago. Later, they realized how much they were offering via building a business on their platform rather than driving customers to their own websites and fetching their information. They changed it, and now Amazon represents meagre 0.5% of their total sales. It is a marketing tool nothing more than that.
Broadening THE HORIZON OF SUPPLY CHAINS.
Many businesses prefer to outsource their manufacturing to other countries such as Mexico and China are two of the most preferred destination. But relying on a relentless trade war between two superpowers U.S. and China, other countries’ businesses will have to deal with the jolt.
Having said that, we have seen multitudinous investment and innovation circling manufacturing automation. And so relying on the price point, product, and customer base you are approaching, it can begin to make sense to manufacture domestically rather than outsource to another country. You would be able to control the parts of your process as well if you choose to do it domestically. For instance,
– Lesser lag time.
– Receiving just-in-time inventory.
– Lesser exertion on the company’s cash flow.
Pandemic has also forced entrepreneurs to think and taught them not to rely on one supply chain or the manufacturing partner. If some ominous things occur politically or otherwise, they will be in the muddy waters soon. Hence, if you are launching a new venture or a product, it is crucial to have other alternative supply chains, that you can take advantage of under dire times.
Pandemic has already devastated mom-and-pop style and retail businesses. Many have adopted the path of E-commerce rather than quitting. Currently, entrepreneurs and founders who are looking for launching a new product or venture have an edge in terms of, doing it online and then moving on to bricks and mortar once the normal life hits back.