The COVID-19 outbreak is crashing the global economy. It’s upsetting everything from entertainment to travel, transportation, food, hospitality, tourism, corporate, manufacturing, and the local unorganized sectors. Except for a few segments associated with essentials around the outbreak and those with possibilities to work-from-home, hardly any other segment is doing business.
This is a multifaceted impact and affects not just the business owners but everyone associated. Whether, you are a high-value manager, skilled technician, salesperson, or unskilled labor, businesses will soon find themselves short on their liquidity funds and unable to pay to their workforces without any revenue. Firms will lose revenue, employees will lose jobs, B2B businesses will lose their clients, and everyone associated in an entire market of demands will face the economic crisis.
Startups are concerned about the growing economic instability. Big firms are distressed about the dive in demands due to reduced purchasing power of the target consumers, as they lose their jobs during and after the pandemic. Even the tech leaders from top names have shown concern about the expected loss of jobs. The United Nations has already issued a warning stressing on an expected loss of $1 trillion in 2020 alone due to the crisis.
If you are an entrepreneur, stressed by the crisis, and looking for ways to keep making money in this tough time, this article will present some resources to do it in the right way. We will talk about potential business opportunities to capitalize on and ways to bag them with some valuable insights during these tumultuous times.
Stay valuable instead of being a profiteer
Some businesses have been employing ridiculous ways to create new business opportunities and profit from the coronavirus pandemic. Fake sanitizers, fake N95 masks, misleading claims of air purifiers companies, or those seeking to install thermal scanning everywhere, nobody is trying to be any valuable but willing to dive down to any level to manipulate panic for their remunerations.
The time ahead is unstable and forceful. There is no doubt the world will cope with the pandemic and we will be back on the track eventually, but how normal would it be? Shouldn’t the profiteers freeze their rogue ideas and become valuable to the economy and their target consumers while generating new business opportunities during these tough times?
The idea of business opportunities amidst the pandemic sounds insensitive, but only if entrepreneurs are relying on ridiculous ways to generate profit out of insecurities of the consumers. If they focus on the core value of entrepreneurship, that is being valuable to the target consumers, there are quite a few genuine opportunities for starting a new business in these times, too.
Optimistic environments for startups are being created everywhere
Governments around the world are supporting startups, as they know that pandemic is temporary but the need for overall economic stability is permanent. In the US, the SBA has announced to provide ‘disaster assistance loans up to $2 million for small businesses affected by the COVID-19. Besides, it has also offered an express loan program for exporters whose international businesses are hit by the crisis.
Many European governments are trying their best to lift off burdens from the startups. Germany is encouraging new business ideas that encourage social distancing. It has announced a €25 billion relief package, which comprises of selected capitals for small businesses, including annual tax credits up to € 20,000. France recently announced several relief measures including funding for payroll supplementation for the firms forced to lay off employee hours due to the crisis.
The big private firms and B2B companies are also giving their best to create positive environments for the ventures. Facebook is providing $100 million in cash grants and advertising credits to small businesses. Citi bank has suspended late fees and forfeits for small firms affected by the outbreak.
Opportunities for investors amidst COVID-19
The coronavirus outbreak might have forced us to stay in the safety of our homes, but the constant efforts of the entrepreneurial minds will enable us to cope with the aftereffects and the current situations as well. Amidst the steady encouragement from the governments and the market itself, you can indeed create opportunities for starting a new business by providing value during these hard times. Here are some business ideas that you can tap during the COVID-19 pandemic:
Online Delivery Business (The biggest in demand):
During the lockdown when people can’t go out and physical stores for essential supplies are not functioning everywhere, people are relying on online deliveries to meet their needs. Interestingly, even governments are using online channels to deliver essential supplies to their citizens in the lockdown. In short, starting an online local delivery business for essential items is one of the best opportunities for starting a new business during the pandemic. You can choose a niche and create an online delivery platform accordingly. Here are some niches that you should consider:
- Online Medicine Delivery
- Online Food Delivery
- Online Grocery Deliveries
- Local Courier and Delivery
While schools and offices have temporarily paused, people stuck in their houses are moving towards streaming services for entertainment and killing some time. In fact, streaming services like Netflix had to downgrade their streaming quality to cope with an increased load on their streaming servers during the lockdown. Streaming is one such industry that has seen a spike in demand during the COVID-19 pandemic.
If you have a profitable streaming business idea in your mind, now is the right time to invest in it. There are various turnkey video streaming solutions in the market. You can use them to build your platform, right from your home.
With an increasing number of companies expecting their employees to work from home, a sudden spike in the demand for collaboration tools has vented around the globe. While big firms might already have enough resources for remote collaboration, small businesses are relying on publicly available tools like Skype and Zoom to get an improvised level of collaboration. With Zoom’s recent incident about leaking user’s data, it has been hard to trust public tools anymore.
You can build a dedicated teleconferencing tool, with specialized features for collaboration, meetings, and project management to attract such companies. Certain live streaming solutions with monetization options like subscription or pay-per-access can be used to build such tools quickly.
While multiplayer games like Fortnight, PUBG, and Call of duty were already in great demand among mobile as well as PC users, there has been an increase in the demand for lightweight online mobile games due to the lockdown. People are looking for small games to play online with their friends from home.
Lifestyle and Wellness:
In the face of coronavirus crisis, immunity is the biggest concern among people. Keeping this in mind, home exercise programs, and fitness industries are well poised to rise in demand. Whether it is online exercise, gym, fitness videos, or sale of indoor fitness equipment, there is a scope in this segment in both video streaming and eCommerce section.
You can start an online video streaming platform or live streaming platform for exercise, yoga, gym, and fitness content. You can also invest in online sales of indoor fitness equipment. You can use a ready-made eCommerce platform to build your eCommerce website in a few days.
Online Education and E-learning:
While many of us are killing our time in lockdown watching our favorite shows on video streaming platforms, many others are utilizing the time to acquire new skills through online learning. The demand for e-learning courses has risen and people are looking for small and long-term e-courses to make the best use of this time. You can start an e-Learning site to meet these demands.
If you have access to resources and subject experts who can provide the learning materials, this could be a great time to sell some online courses. You can use a ready-made e-Learning website builder to create such sites from your home. There are ready-made solutions to build e-Learning marketplaces as well as live learning websites with video conferencing and live streaming capabilities. If you can create digital courses in time, you can invest in live tuitions by hiring subject experts to take the classes from their home itself.
Of course, before investing in any of the potential business opportunities to capitalize on, it is also important to ensure that your local authorities have allowed the operation of such activities. Besides, a comprehensive study of the local infrastructure to support online deliveries, internet connectivity, delivery fleet, and available suppliers is also important.