Is Coronavirus Unemployment Leading to More Entrepreneurs?

Coronavirus unemployment is an unfortunate, devastating result of the COVID-19 pandemic and its effects on the world economy. People from all walks of life have been affected by job losses since the start of the pandemic.

Full-time jobs are a lot harder to come by these days, in certain industries. According to the World Economic Forum, about 70% of startups have been forced to let full-time employees go as a result of COVID. It could be argued that coronavirus unemployment is leading to more entrepreneurs.

In the wake of the COVID-19 pandemic, a wide range of industries have been impacted. Industries such as travel, entertainment, and event planning felt the effects of the pandemic immediately as restrictions on travel and large group events were put into place. But the shutdowns in these industries sent a ripple effect across the individuals and companies that support and benefit from them.

In March 2020, many states elected to temporarily shut down all businesses except essential services. This also resulted in furloughs, layoffs, and salary cuts. But because there were additional restrictions levied against essential services (i.e., hospitals could not perform elective procedures), even hospitals experienced staff layoffs.

Even now, some states are still partially or fully locked down as the pandemic rages on. Many individuals are still depending on coronavirus unemployment to get through the next few weeks or months. The ripple effects we’re still feeling have not only reverberated through profitable industries and manifested in jobs and money lost. They have also driven many individuals into entrepreneurship.

If you’ve felt the economic impact of COVID, including coronavirus unemployment, you’re not alone. But starting your own business offers the potential for more control, flexibility, and stability if planned and executed right. As a business owner, you may also have the valuable option of pivoting your offer during difficult times.

With a profitable idea, a business can provide more control over your income and more flexibility around your schedule. A business gives you the option of establishing multiple streams of income and takes all your proverbial eggs out of the same basket. If you lose one client or one income stream, you aren’t likely to lose it all at once.

You can lose a full-time job in the blink of an eye, but a business–although the income might not be as steady, especially at first–will at least be there, even if you have a bad month or two.

Since the recent economic turmoil, people who might never have considered starting a business are thinking about it now. But is it the right choice for you?

Starting a business is a very personal decision for each individual. It’s largely based on your life circumstances, as it takes time and effort to get your idea off the ground the right way.

Before you start, take a look at your current situation and consider whether running your own business might offer you more flexibility and a more stable income than the full-time job you have (or had). If you’re currently out of work due to coronavirus unemployment, a business might be a great way to get back to work again.

Here are some things you should consider before diving in?

• Is your idea valuable and profitable? Do your due diligence, research your market, and test your idea to determine whether it’s the idea you should pursue.
• Are you okay with being the one person who can make this work? It’s on your shoulders to seek advice from mentors and professionals you trust, and to build a team that supports you…all while executing on your idea and building your brand.
• Are you capable of reporting to yourself? Your effort will be what drives the business forward, every day.

Take all these questions into account as you begin planning your business. If you determine that running a business isn’t right for you, that’s okay, too. It’s best to know what’s likely to work for you, as early as possible.

To launch and run a successful business, you need solid workflows. Build a system that works for both you and your clients, and get support as early in the process as possible.

Administrative support, office and executive management, and business and project management are all forms of support that can help your business run smoothly and work for you. Getting tasks delegated, automated, and under control early on will help you launch your new business successfully and help prevent overwhelm.

Ready to start your business on the right foot? CENTIFY™ can help you structure your business’s workflows and get it off the ground and running smoothly. Contact us here for more information.