The country struggles to survive the terrible (un)employment rate and several regions are at the brink of another round of shutdown insomuch as the possible second wave. No wonder the recent statistics caught many by surprise: according to the U.S. Census Bureau, the third quarter of 2020 witnessed a whopping 1.5 million new business applications, 77% increase from second quarter and a record-high in the U.S. history.
Image from U.S. Census Bureau Release Number: CB20‐156
It is worth pondering upon the reason for such dramatic increase, and here is some food for thought:
Dead weight free
Many established businesses are locked with long-term contracts that have soon become nothing but dead weight. Countless breach of contract lawsuits are on the horizon. We predict that New York Courts will be extremely cautious when facing the challenge of contract validity and enforcement during the pandemic, therefore it won’t be easy for those established businesses to shed off these dead weights. New businesses, on the other hand, start afresh and are free from these troublesome contractual obligations - sometimes starting from zero already places you ahead of the curve!
Diminishing competition
The rate of business closures and shutdowns might just be neck and neck with the emerging startups. This is a time of business landscape reshuffling. Think about our basic needs: food, residence, commute, entertainment, culture… None of these diminished by any means. What has diminished is those traditional business models that all of sudden find themselves unable to adapt to this new environment. With many competitors going out of business, more resources become available. Just look at those vacant commercial space at the heart of your downtown. Some of my clients have reported their sales tripled just because all other competitors in the same area are either closed or too slow to adjust to the new norm.
Easy administration
With the new trend of working-from-home and the prevalence of internet and electronic transmission, forming a new business has never been easier. Why the hassle of hunting and negotiating for office space while you can create a virtual one yourself? While it is true that starting a new business is risky, the same can be said to employment where you be laid off and lose all source of income overnight. Challenge and opportunity are often two sides of the same coin. If you ever think of being an entrepreneur, now might be the time.
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