Much like with everything in life there is a good time and a bad time to do something, but there is never an ideal time. For example, you might want to buy a house, but the housing market can be going up so the prices are higher. The same applies to starting a business to an extent. This is because a new line of work can be anything, and whether customers find it useful determines if it’s good or bad. In other words, anytime there is a demand for something it’s a good idea or less risky to start that type of business. Yet, things are a bit different now, and let’s examine what are the factors that make it more difficult to succeed.
Digitalization
Almost all businesses went digital which makes everything more accessible or on-demand. This means that if you wish to open a store you might have to compete with some of the big marketplace platforms that simply provide better options and superior service. That being said, it’s easier for you to register as a merchant there and get your product out there. So, it’s not exactly riskier, it’s just that the amount of money you are earning needs to go to them. Meaning, you can’t compete with them so you have to join them.
Higher Expectations
Since services and products are more accessible it means the competition on any market is tighter. This is overall a good thing as it forces people to innovate and be better in order to compete. However, it also raises standards and makes it difficult for startups to create a compelling offer. Still, people love when they are treated with respect and when you don’t view them as just a customer. This is something smaller businesses can do, as they don’t have too massive of a user base.
Access to Funds
Every time our financial system goes through a crisis things change. We all know how the housing market collapsed and that made loan approvals more difficult. So, you need to be more transparent and ensure you have collateral for the loan. This is why it’s riskier to start a business as funds are not as accessible, and if you already went through a bankruptcy, then getting another loan is going to be even harder. So, don’t waste your shot.
A Lot of Business Fail
The reality is that the majority of startups fail and it’s why people tend to be hesitant about going on a brand new business venture. However, this is not because they did not start their business successfully, it’s because it became unsustainable. So, you need to be very careful while expanding, given how these growing pains turn out to be more than some players can handle.
It’s More Difficult to Be Visible Online
This is both true and false at the same time.
If you wish to compete internationally then yes, you will have a significantly harder time now than a few decades ago. However, if we are talking about the local market, local SEO and Google Ads pretty much do the trick, along with a few targeted social media campaigns. There are multiple platforms where you can promote your product or services to users in the near vicinity, so it’s not as scary as people make it out to be.
