Could starting a business from home be the solution in this current economic crisis?
While the UK government has already approved a long-term economic stimulus aimed at protecting citizens from economic ruin, workers in the US have not been as fortunate. It has now been six months since the CARES Act was approved, giving all eligible US citizens a fair amount of financial relief, but there has been little progress made since. By contrast, government officials in the UK have agreed that additional support will be necessary for at least the next 18 months. Shuttered workers in both countries have found themselves without work, many of them permanently, as some industries have been particularly hard hit. Many are starting their own companies, with most being completely run online from home. Here’s how they are making the transition.
Starting a Home-Based Company After Being Laid Off
Every month since the start of the coronavirus pandemic, millions more have been laid off. Initially, government officials were adamant that these lay-offs would be temporary in nature. Stimulus packages aimed at reducing the financial burden were passed, as citizens tightened their belts and avoided making extraneous purchases. Then it became apparent that many of these lay-offs were permanent. Workers who transition to at-home positions dealt with childcare woes as well as increasing energy and food expenses. If you are starting a home-based business now, it is because you have no intention of getting back into the rat race. Home-based business owners don’t primarily desire freedom; they are looking for financial security.
The Difficulties Involved with Launching a Business with No Capital
Although it is shrewd to take yourself out of an overcrowded job market, it is also smart to figure out how you are going to finance your at-home business venture with limited capital. Banks in the UK and elsewhere have shut the proverbial door on many types of loan applications. It’s hard to get a mortgage approved right now, and next to impossible to receive funding for a newly minted business. Neighbourhood and community-based financial institutions are a little more lenient, but not by much. You may have better luck with crowdfunding and looking for microloans online than with traditional banks at the moment.
Types of At-Home Businesses Being Started
A lot of the home-based businesses being launched by shuttered workers are based on fulfilling the needs of others impacted by the economy. Childcare, entertainment, and even delivery services are faring well. Online businesses selling face masks, cleaning supplies, and other essentials are also posting respectable profits. Consumers are even more open to ordering homemade products in an effort to support their local communities. Since home-based businesses can be headed by a single worker, there are less overheads for business owners to worry about.
Home-Based Companies Can Be Run with No Support Staff
Getting a home-based company running by yourself is difficult, yet possible. However, when you start to run into problems, you mainly have only yourself to depend on. Virtual personal assistances can be great for staying organised but if you are not tech savvy then you will need some type of remote support services. If you live in Kent and the surrounding areas, Impreza IT is a good option as they offer tech support services to home-based businesses who want to keep their company websites running 24/7, securely. Eliminate the prospect of having your website hacked and keep your customers safe by partnering with an IT Support Kent company. Most importantly, this IT support company does everything remotely, so you don’t have to leave your home in order to receive help.
The Easiest Way to Find Customers
As people are spending an unprecedented amount of time at home, most of them are spending additional hours surfing the web. This has opened the door for home-based businesses in the way of advertising and exposure. Social media promotions are far more effective, with engagement levels and click-through rates going way up. More consumers are looking for contactless order fulfilment as they are concerned about their health. Moreover, people are just finding it more convenient to be able to make purchases online, at home. Consumer demand for delivery has been through the roof, so any home-based company that can offer these types of services is in high demand. It has become easier and more convenient to look for new customers remotely than it is to distribute flyers in crowds, do door-to-door sales, or host product demonstrations in public locations.
Reducing How Politics Impact Your Livelihood
With the UK having had its last general election in 2019 and the US fast coming up to have theirs in November of 2020, politics have taken a precedence over all other topics. Even though the coronavirus pandemic remains a growing problem and tens of millions of people are out of work, politics is a top priority because the government officials being elected are expected to come in and solve these issues. As out-of-work citizens in the US have been without expanded unemployment benefits since the end of July, many are still waiting for the help that they were promised. Unemployment rates in the UK hit just short of 5 per cent in October, which is the highest total seen in years. Launching a company is a solution for many who are no longer willing to let politics dictate their livelihood.
The Solution to Unemployment Benefits Woes
In the US and the UK, unemployment benefits are available in most cases. However, independent contractors do not usually have the same federal protections. As they are responsible for paying their own taxes to the government directly, they are left to figure everything out for themselves when their contracts are terminated or put on hold. While the companies they worked for have been able to apply for PPP loans in the US and PPPLF in the UK, Jobseeker’s Allowance has been a major bust. There simply isn’t much work to be found as companies remain shuttered and the public are no longer spending like they did pre-coronavirus.
Remaining Financially Whole
If you have decided that launching a business during these difficult financial and political times is the best way to secure your future, you’ve likely experienced economic hardships in the past. The last major recession transpired approximately a decade ago, with the economy only rebounding in the past few years. Inflation has remained steady despite few, if any, government measures to deal with economic disparities between the classes or substantially increase the minimum wage. To start a company in this climate means that you are prepared to take life by the horns and sink or swim on your own, as opposed to staying stagnant and remaining with a wage earned. Launching a company may well be the best way for you to remain financially whole.
People who have been laid off or found it impossible to find work in their respective industries are starting home-based businesses because it is the best thing they can do in current circumstances. They’ve been subject to extended stay-at-home orders, travel restrictions, and social distancing rules. The few industry networking events that have taken place have almost all been remote. Reference letters have been stashed away as there are relatively few job openings available, at least not those hiring full-time at comparable income levels. The long story short is that a home-based business allows you to stay home, stay safe, reserve your resources and put all of your effort into an endeavour that will likely pay off in the long-term.