Stephen C. McGinley is an entrepreneur in Seminole, FL involved with real estate investing and consulting for new startups. Formerly with Stephen C. McGinley Counseling, in the article below, Mr. McGinley discusses how the current economic environment and available technology lend to the idea that now might be a great time to strike out on one’s own.
Stephen C. McGinley explains that new tools and technology, changing consumer habits, and opportunities in the post-COVID 19 economy give new entrepreneurs an incredible competitive advantage.
Better access to talent and resources
Stephen C. McGinley reports that even with limited capital and operating budgets, entrepreneurs can still hire good people and buy materials. With a quick search on the Internet, they can find freelancers or offshore talent, or compare prices of suppliers from all over the world.
The employment crisis caused by the pandemic – which led to layoffs and salary cuts – can even be an opportunity for a new business says Stephen C. McGinley. Entrepreneurs can now hire experienced talent, who otherwise would have preferred working with larger and more stable companies. While they may not be able to match the person’s previous salaries, they can offer other alternative compensation schemes such as equity.
Lower overhead costs
Stephen C. McGinley says “virtual offices” with employees working remotely eliminate the cost of rent and utilities. Outsourcing business support units – such as customer service or delivery – are often cheaper than acquiring and maintaining full-time staff.
And with the economy in recovery, entrepreneurs may also negotiate very good deals with suppliers and contractors. Many businesses are eager to get new clients after the COVID-19 slowdown, so they may be more flexible about their prices and payment schedules.
The rise of “trysumers”
One of the biggest challenges of a new business is how to persuade consumers to try their product or service explains Stephen C. McGinley. However, customer acquisition has never been easier because of the pandemic. Because of economic necessity and changes in buying routines (such as shopping online), they are more willing to try new brands – or what Entrepreneur magazine calls trysumers. Stephen says only half in jest, that online shopping maybe the new activity that makes one feel good, instead of going to a therapist for psychotherapy. At least in the case of online shopping if you buy the wrong item you can get your money back.
Other consumer trends also work in favor of entrepreneurs, such as “buying local” or supporting brands that have a cause that resonates with their interests and values. So, a business can get a good foothold just by focusing on building relationships within the community and giving back to it.
Affordable marketing
Stephen C. McGinley explains that before, marketing was a very expensive and risky. Entrepreneurs had to spend thousands of dollars to mount an event, advertise, or print out brochures and leaflets. After the campaign, they couldn’t monitor the target market’s perception of the brand without hiring a professional research agency.
Today, marketing can be very affordable and agile. Stephen C. McGinley says entrepreneurs have several platforms: websites, social media, Google ads, landing pages, etc. They can then use the analytics to monitor the results and then tweak their marketing strategy. Every marketing dollar goes to activities that matter.
Entrepreneurs can also create marketing collaterals at a much lower cost says Stephen C. McGinley. They can either make it themselves with free and user-friendly design software like Canva or hire freelancers who charge a fraction of the cost of agencies.
Affordable business tools
Entrepreneurs can take their pick among the latest tools for project management, productivity, finance, sales and lead generation, marketing and e-commerce.
Stephen C. McGinley explains these tools make it easier for entrepreneurs to save time, money and effort. They can set up an online shop in just one day, and simply upload photos of products into the platform. They can make an entire social media calendar and then schedule posts. They can keep track of work of their people across different time zones.
By automating or scheduling these tasks, entrepreneurs can focus on strategic, revenue-generating tasks instead of being bogged down by day-to-day details.
New business agility
New business are actually in a better position to survive and thrive in an uncertain economy. They can make decisions more quickly, can tailor the business model to new consumer needs and trends.
Old businesses, on the other hand, are overburdened by big structures and overhead costs, and may be unwilling (or even unable) to adapt to the post-COVID environment. For example, many brick-and-mortar giants suffered millions of losses down the pandemic, while local businesses were able to scale down, pivot to online selling, and weather the storm.
Entrepreneur training
Most entrepreneurs will have to do many tasks themselves when their business is just getting off the ground. They handle accounting, marketing, sales – and face tasks they’ve never done before, such as going through contracts or learning local business regulations.
This can be very overwhelming, especially for those who have no business degree or experience. However, there is a wealth of resources available on every aspect of business management. Entrepreneurs can read a book, attend a webinar, join organizations, or even get a “business coach.” This list from Inc on the best tools and resources for entrepreneurs and startups is a great place to start.
A powerful start
Stephen C. McGinley explains that starting a business will always involve some level of risk. However, these factors can help entrepreneurs launch a business with lower resources, less risk, and better options. With hard work, and a willingness to learn and adapt to the needs of the market, entrepreneurs have a good chance of success.
