1. Interest rates cuts have made rates more affordable than ever
After emergency cuts early in 2020, the U.S. Federal Reserve has continued to keep short-term borrowing rates near zero in a bid to help the economy recover from the COVID-19 pandemic more quickly. What this means for aspiring small business owners is that it’s more affordable than almost ever to borrow the money you need to buy or launch a small business or expand it once you start it. In fact, lower rates can mean that lenders can approve you for higher amounts than they might if rates were higher.
2. Get in early on new and lucrative small business opportunities
Though the COVID-19 pandemic continues to impact small business, those impacts aren’t all negative. Some industries are seeing record increases in business due to the “new normal” of the changed economic and lifestyle landscapes. Grocery store revenue, for example, is up 87 percent in 2020 compared to 2019.
Even industries that have been hit harder than others have opportunities to pivot and grow in new ways that can prove lucrative. For example, while the food service industry is struggling with in-house dining during lock-downs and quarantines, consumer interest in food delivery services had increased by 148 percent by the end of June 2020.
3. Hiring is suddenly much easier
Guidant’s annual Small Business Trends report showed that pre-pandemic, small business owners were struggling with hiring and retaining new employees – a trend that had been increasing over the past few years. However, with the unfortunate impacts of the COVID-19 pandemic on the economy and businesses unable to pivot to a model that kept them afloat, there are currently a lot of very skilled, very eager people looking for work. Opening a small business helps support your community not just by providing goods and services, but also by creating opportunities for talented people to help your business thrive.
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4. Holiday sales and deals
Let’s face it: if there’s one activity that characterizes the holiday season, it’s that money changes hands, frequently and in many cases abundantly. That can help your business in several ways.
First, it can bring in revenue to your fledging business. Between Thanksgiving and New Year’s, people shop as they do in no other period of the year. Aggressive shoppers can be easily persuaded to buy some products from you, even if your business has just begun to be up and running. Even people who may not be in shopping mode at other times of the year are revenue generators in the holiday period. You can tap both those groups of people in generating sales.
You can generate revenue, too, by keying the launch of your business to the holidays. Holidays provide opportunities for eye-catching sales campaigns, special offers to draw customers in and multiple other festive marketing efforts. If you buy your business by the end of the year, you can have noticeable sales campaigns tied to the holidays through New Year’s Day.
Second, the holidays are frequently characterized by great deals. You can capitalize on deals for your business! If you need to make capital expenditures on office equipment and supplies for your business, holiday sales like Black Friday (the day after Thanksgiving) and Cyber Monday (the following Monday) can ensure that you start the business on as financially prudent a footing as possible. Buying capital equipment at 25 percent off or more can help your profit margins from the very beginning.
It’s not only the leadup to the holidays that provide deals, of course. Immediately after Christmas, many items needed in offices and other business sites will see a steep markdown. It’s to your advantage to purchase during times of deep discounts — like the last week of 2020.
Let Guidant Help You Achieve Your Dreams…This Year
If you’re hesitant to start a business now because of funding concerns, we’re here to help. Call us at 888-472-4455 or reach us online to learn more about your small business financing options and how we can help you get started on your path to success.