Launching a business in 2021 is not as intimidating as it may initially seem, even in the fact of the coronavirus pandemic. Over 570,000 companies started in the UK in 2020, with the number of newly established businesses 9.5% higher than the year before. Covid-19 has bought about new opportunities - this is a time for new business to adapt and innovate.

Is 2021 A Good Time to Start a Business?

Starting a business during the coronavirus pandemic seems scary - Covid-19 has caused one of the biggest recessions that the UK has ever seen, after all. However, recessions aren’t always bad for business. In fact, the 2008 financial crash saw the creation some of today’s biggest businesses - AirBnB, Uber, and Instagram all emerged in the wake of the following recession. Contrary to popular belief, the coronavirus pandemic might be the perfect time to start a business.

While it’s a challenging time to start a business, challenges lead to innovation - which, of course, is the foundation of all groundbreaking businesses. The Covid pandemic has created an abundance of new opportunities in online services, delivery, and cleaning, among other areas. 2021 is an excellent time to start a business if the business if bursting with new ideas and innovation.

Interest rate is also lower during times of crisis - in fact, the interest rates at the Bank of England are currently at their lowest in the institution’s history. This means that borrowing is cheaper than ever - which in turn means that it’s easier than ever to find funding for a new business.

In addition, there are more people available to work - new business owners can hire from a huge talent pool of highly-skilled workers. What’s more, there’s less competition right now - it’s an ideal time to launch a business that stands out.

Starting a business now puts you ahead of the game. The post-covid economy will be supercharged - if the foundations of a business are established now, it’ll be set up for success in the future.

Covid Business Ideas

There are plenty of business ideas that can thrive in a post-covid economy and beyond.

Cleaning Business. Cleanliness and hygiene remain a top priority in 2021, especially with schools and offices set to reopen. Companies want their employees to feel safe at work, which means there will be increased demand for cleaning businesses. Supplying cleaning products and managing cleaning teams are two ways to make your way in the industry.

Delivery Services. Now more than ever, people want products delivered directly to their home, whether that be online shopping, everyday groceries, or their Friday night takeaway. Many establishments are yet to adapt to the new delivery economy - there is a gap in the market for a business to help smaller shops, cafes, and restaurants reach customers in their homes.

Tutoring and Online Courses. With schools on hold for much of the past year, education has suffered. Many anxious parents are eager to provide their children with extra help via tutoring - so tutoring agencies are on the rise. With online platforms, it’s now easier than ever to tutor. There’s also a market for online courses for adults, too, as people seek to expand their skillset.

Drop Shipping. A relatively new business venture, drop shipping is a type of eCommerce. The drop shipping business owner takes orders for a product, and then forwards this to a third-party manufacturer, who ships the product and thus completes the order. With online shopping rising exponentially in popularity, this is a low-cost way to start an eCommerce business.

Home Care Services. Caring for those in need is now more important than ever. Whether it’s delivering groceries and medication, running errands, or helping around the house, 2021 is an excellent time to start a home care service.

Wedding Planning. With many wedding celebrations postponed in 2020 due to the covid pandemic, 2021 is set to be a busy year for wedding planners. A wedding planning business is relatively low-cost to start, too.

Food Truck. With outdoor socialising now the new norm, food trucks are an innovative way to bring a catering business to a new audience. While it’s a business that requires a lot of upfront investment, the trend for grabbing coffee or lunch while on a walk in a park is set to continue in 2021 and beyond.

How To Start A Business In 2021

It’s clear that it’s a good time to start a business - however, you’ll need to adapt the way you start your business in response to coronavirus. The economy has changed as a result of the covid pandemic, and a good business plan needs to take this into account.

How Will the Business be Financed?

There are several government loans which have been launched in response to coronavirus, including the Coronavirus Business Interruption Loan Schemes and the Future Fund, which new businesses should take full advantage of. Local councils also have small business grants, too. With the rise of the online world, crowdfunding websites, such as Crowdcube and Seedrs, are also quickly becoming a great way to finance a new business. There are also business options which require little to no money to set up - digital marketing and freelance copywriting are two great options.

How Will the Business be Marketed?

With many still staying at home, new businesses need to be savvy with their marketing. Social media is a low-cost, high-impact way to reach people during Covid times. A successful business will adapt their marketing strategy as well as their product.

Who is the Target Audience?

With the post-covid economy in recession, a successful business needs to have a specific target customer in mind. You can reach a younger audience via social media, but if your target customer is in an older age group, you may need to rethink your marketing strategy.

Need more advice on starting a business during the coronavirus pandemic? Our expert team can help you with business plans and much more. Find out more here.

Starting a Business During Covid-19