The appeal of starting a business in lockdown

21/05/2020

The amount of new business websites being registered has risen by 60% during the lockdown period, when compared to the same time period last year. Could lockdown be the perfect time to start your business?

With many people finding themselves at home with a lot of extra time on their hands, some have decided to use the time to launch a new business venture.

Whether they are looking for a way to supplement their income or have suddenly found themselves with enough time to work on a long dreamt of business idea, more people are trying their hands as entrepreneurs.

But with the economy currently so unstable, is now really the best time to start a business?

As it happens, many businesses that we would consider themselves particularly successful today had their beginnings in more difficult times.

Uber, the popular ride sharing business, was founded back in 2009, when the UK economy was still reeling from the 2008 financial crisis. The company quickly grew, eventually finding itself as the highest valued private start-up company in the world.

Looking further back, to the 1929 great depression, which is still considered the worst financial crisis in the world, we can see a foundling company that has since grown to become one of the largest, most recognised businesses in the world: Disney. 

Having been started just 6 years earlier, Disney was still a relatively new company when the great depression hit, and it was in 1929, in the midst of the financial crisis, that they released ‘Steamboat Willie’, the first cartoon featuring the iconic Mickey Mouse. Its success saw them through the economic crash, and the company flourished and grew into the highly successful conglomerate that we all know today.

So clearly it is possible for a successful business to be started during times of economic hardship, but why might so many people be drawn to the self-employed life now?

Bring in extra income

As we’ve already mentioned, it’s very likely that some of the people who are looking to start their own business at this time are doing so either out of necessity, having lost their regular jobs, or in order to top up their reduced income while they cannot carry on their normal jobs.

Something to focus on

In this difficult time, many people are stressed and worried, not only about their financial wellbeing but their own and their family’s health.

A new business can provide a much welcome distraction and gives people something positive to focus on.

The potential of flexibility

Given how many people have had to adapt to working from home over the last few months, it is likely that a number of them have decided they want to make this a permanent change.

Working from home full time may not be for everyone, but it can offer a better work-life balance and some people may have decided the flexibility is something they would like to embrace further in the future.

Supportive community

For those that have been hoping to start a business for some time, another perk may be that the business community is coming together to support each other through this crisis, with discounts, offers and freebies being made available.

For those that had been unsure about starting a business before, this extra support may provide the push they need to take the plunge.

Have you thought about starting a business during lockdown? Do you have any tips for those that have? We’d love to hear about them in the comments below.