Set up a side business during COVID-19 to supplement your income during the downturn. Goldman Sachs recently released a report in which it claimed that the UK economy might contract by a whopping 25% in the second quarter of this year. That’s an eye-watering amount – as large as the Great Depression – and underscores just how severe COVID-19 has been.
But that doesn’t mean that entrepreneurs or professionals need to give up on their business plans. In fact, there are more opportunities than ever.
Why COVID-19 Is An Opportunity
Under normal economic conditions, few people would advise setting up a new company in the height of a recession. Startups thrive when there’s a decent amount of demand in the economy. They tend to suffer terribly when people slash their discretionary spending.
But the current virus lockdown is doing something fundamentally different. Yes – demand is falling in some areas, but it is lumpy. What’s more, the economy is shifting because of the need for people to social distance. So we’re seeing some parts of the economy withering while others are going into hyperdrive.
Let’s say, for instance, that you’ve been furloughed from your regular work and you’re not sure whether there will be a job for you to go back to once the lockdown ends. You can either sit around, waiting for the inevitable call from your boss giving you the bad news. Or you can think carefully about how you can serve people in your local community with the resources you have. It’s worth checking that your contract with your existing employer allows you to do so.
Which Sector Should You Target?
You can set up a side business with very little start-up costs.
For example, delivery services are seeing an unprecedented boom in towns and cities across the UK. People don’t want to go to the shops because of the risk of infection. So there’s a growing market for services that deliver directly to the door.
As sites like https://www.tradecarsandcommercials.co.uk/locations/prudhoe make clear, picking up a van is surprisingly cheap these days. With interest rates being so low, it is no more expensive than taking out a car on finance. You just pay a reasonable monthly fee, and the vehicle is yours to use how you like.
If you’re stuck for options, therefore, you could think about how you can make people’s lives more convenient when they’re not allowed to leave the house (or don’t want to). Setting up a business is surprisingly easy when you understand these needs and can see a way to fulfil them.
A lot of people are worried right now about their finances says https://www.fca.org.uk/news/press-releases/covid-19 So concerned, in fact, that they won’t take advantage of opportunities that come their way, even if they make sense financially.
Those with cooler heads, therefore, are likely going to be the ones who ultimately prevail. People who can see opportunities and take advantage of them will eventually prosper in this time of crisis.
Here’s some advice: start small to begin with. You don’t want to eat into your rainy-day fund too much. Just test the waters and see whether anyone is willing to bite. Then scale up, increasing your marketing, and find out whether you have a viable business on your hands. Who knows how long the lockdown will continue? You may be able to profit from it for years to come.