2020 was a strange year for everyone, but 2021 is set to be a lot more like normal, and it could be the best year yet to start your business. You may be thinking the opposite with everything going on right now, including an enduring pandemic, deep recession and Brexit coming into effect.
Despite all of this, 2021 could still be the right time to start your business, here’s why.
5 Reasons It’s a Good Idea to Start a Business in the UK in 2021
1. History Says So
What do Microsoft, Uber and Airbnb all have in common? They were all launched during a recession and are hugely successful businesses. While a recession kills many companies, it also gives birth to others. Ideas that solve problems during tough times are bound for success.
During the pandemic, the most successful businesses are those that make life at home under lockdown that much easier. Slack helped millions of us collaborate with work colleagues while sitting at home, and Zoom helped us stay in contact with loved ones when we couldn’t see them. Both witnessed extraordinary growth and success last year.
If there is any perfect moment for a business to start, it’s when people need it the most. As we continue into 2021 with lockdown measures in place, if your product or service improves people’s lives during this challenging time, you may have an advantage.
2. Online Consumption Is at Its Highest Level
Even before the pandemic, online shopping was on a steep rise. Last year, eCommerce sales rose by a whopping 30%, and shoppers are buying products online that they wouldn’t normally. This is helping to reshape the eCommerce industry, boost shopping software and improve cybersecurity, making way for a huge number of unique opportunities for online businesses.
During the pandemic, 75% of shoppers said they tried different brands, and 60% expect to integrate those brands into their lives post-pandemic.
3. Access to Skilled Workers
One of the most unfortunate consequences of the pandemic has been the loss of jobs. This is an opportunity for startups to snap up some fantastic talent that can help their business get off the ground quickly.
Not only will these people give new companies a boost, but entrepreneurs can help those in need of financial relief during an unprecedented and tough time in their lives. Connecting people with a new idea and a new vision is precisely what people who lost their jobs will need this year.
4. The UK Nurtures Entrepreneurship
The UK has always been a leader in entrepreneurship compared to its EU counterparts, and with Brexit now in full swing, it’s likely that the government will do even more to support those starting new ventures. For the UK to stay competitive, it’s in the government’s interest to ensure entrepreneurs have the resources and support they need to succeed.
Expect new initiatives this year that will seek to get new companies off the ground quickly so they can start contributing to the country’s economic growth.
5. Less Competition
As trade between the UK and the EU struggles through its teething issues, there are opportunities for local businesses to pick up the slack. EU companies that once regularly exported goods to the UK may now have to reduce their number of shipments or cease them altogether. This opens up a big door of opportunity for new businesses in the UK to provide the same goods and services locally.
Similarly, many budding entrepreneurs are put off by the idea of starting a business post Brexit, giving those willing to take the plunge more chances of success.
While trade between the UK and the EU may become more difficult in the short term, the government will inevitably strike trade deals with countries outside the EU. Brexit will open the UK up to new markets with new opportunities for entrepreneurs. A devalued pound is good news for those wishing to export goods, as products become cheaper than they would be in EU countries with a stronger currency.