Starting a business in 2021 – things you need to know
The last couple of years have been as tumultuous as any in recent memory. If you’re bravely entering this fraught and unpredictable economic environment with a brand new business, you need to be aware of the one-of-a-kind challenges that lie ahead.
And while it might be tempting to wallow in the doom-and-gloom of the coronavirus pandemic, there are reasons to be cautiously optimistic heading into 2021.
With this piece, we’ve tried to give you an insight into the key catalysts, circumstances and considerations that are going to define the coming year.
Hopefully, they’ll help you put your best foot forward when navigating the tricky and unprecedented modern world, and most likely setting up your business from home.
Where physical stores have floundered, ecommerce sites have flourished
The death of the high street has been around the corner for a long time. The pandemic simply sped up the inevitable. With shops across the UK forced to close to limit transmission of disease, online businesses expanded to eat up the share of the market newly abdicated by floundering high street stores.
Globally, enforced lockdowns and a newfound reticence to venture into packed public spaces for fear of contracting coronavirus, e-commerce has blossomed. In 2020, online sales grew by 46%. If your business is online, you could be uniquely well positioned to hoover up this growth.
What can you learn from ecommerce’s biggest players
In the midst of crippling restrictions, some high street businesses have scrambled to set up a more comprehensive online presence. Time, however, isn’t on their side. When you’re vying with more established online players who have a more intuitive and easy to use site with tried and tested sales funnels that yield consistent results, it can be extraordinarily difficult to keep pace.
We wouldn’t recommend trying to match them.
Imitating their methods without any of the financial might, carefully constructed infrastructure and vast experience is sure to lead to disaster. Following the principles of successful businesses is a good way to get started but carving out your own niche is much better. The internet gives you countless ways to get your business’ name out there and slowly but surely build up a steady stream of revenue.
Managing customer expectations
It’s imperative to manage customer expectations. Ecommerce giants like Amazon cast a large and imposing shadow. Their enormous growth and their ability to source and distribute almost anything with unerring speed and efficiency is part and parcel of their success. But their ubiquity has made lesser services appear comparatively sub-standard. Amazon parcels can arrive hours after you’ve ordered it.
Trying to replicate that service simply isn’t feasible. While you might not be able to match their speed, you may be able to offer, for example, a homespun, personalised touch that the bigger companies can’t replicate.
Whether it’s the inclusion of a discount code or a hand-written letter, there are different ways of subverting customer expectations and impressing the value of your brand on them.
Support for small businesses
Financial hardship has plagued all of society – with very few industries emerging unscathed. Ecommerce behemoths have best positioned to benefit but smaller, independent businesses have also received a great deal of shine.
A growing minority of people are attempting to be more discerning with the little disposable income they do have during these trying economic times. Instead of being content with their cash going to industry giants, some people have tried to seek out the fledgling local businesses that make a difference in the community.
In the wake of the Black Lives Matter movement, there has been a drive to support black-owned businesses.
Different world, different opportunities
You might, however, be surprised at the levels of spending power that still exist. Wide scale redundancies have been commonplace, entire industries have been forced to close for weeks or months at a time, and employers have been heavily reliant on government support to keep their businesses afloat. In spite of all this, people still have disposable income. Restaurants, bars and nightclubs have shuttered their doors.
The entire travel industry has ground to a halt. The millions of pounds that would ordinarily find its way to the coffers of airlines and hotels around the world have been re-routed. And, with all of us spending more and more time within the confines of our own homes, people’s interests have changed.
Some people have taken up baking, while others have tried to get into better shape. The way people lead their lives has fundamentally changed – birthing new opportunities for eagle-eyed businesses.
So it’s important to consider how the next few months or years will impact customer behavior. As lockdown should (hopefully) come to and end in 2021, will the UK population still want the same thing? Will people keep baking? Or will they look to get back out into the world and go to baking lessons?
Many businesses have started during the pandemic, with those made redundant seeing this as their best opportunity to do so. Forming a company has ever been easier either, with the introduction of apps like Machfast which allows you to register your business for free on your phone in a matter of clicks.
Closing thoughts
If you’re genuinely considering creating your very own ecommerce business this year, the opportunity is there. Some of the most wildly successful companies were founded in the most dispiriting economic eras. Uber and AirBnb were forged in the fires of the 2008 recession.
Who knows? Maybe your business could be the next phoenix to rise from the ashes of economic crisis.