Why 2021 Is The Best Year To Start Your New Business
It may not seem like it, but 2021 is a great time to start a business.
The economy right now is fertile ground for entrepreneurs and business owners. Interest rates are as low as they are ever going to get – so if you get a loan to start or expand your business, your cost of capital is as low as it has been in decades. Also, the rise of “working from home” has opened a larger pool of talent to choose from when hiring. And most importantly, major industries are showing their vulnerabilities—which means opportunity for entrepreneurs savvy enough to invent new, compelling solutions. Whether you’re looking to launch a new product or start a business in the near future, these are the three big trends we would encourage you to keep a close eye on in 2021.
There are a handful of trends that have emerged over the past year that will certainly begin to accelerate as we head into 2021…
AT-HOME HEALTH PRODUCTS AND REMOTE WELLNESS
Health and wellness products are certainly going through a major push right now. Over the past year, we’ve spoken with dozens of entrepreneurs in a wide range of industries: supplements, at-home genetic illness analysis, testing, home fitness, you name it. All of these businesses have quintupled in revenue in the last six months.
And while we do believe this growth will most likely deflate a little bit initially after there’s a COVID-19 vaccine, we also foresee this trend roaring back with even more sophisticated products not long after.
E-COMMERCE WILL CONTINUE TO GROW
E-commerce is quickly establishing itself to be the best and easiest way to launch a product and/or business. From a testing point of view, it’s much more effective to engage and gather feedback from customers online than if you were to try to do something similar as a brick-and-mortar type of business. Facebook and Google remain the easiest ways to market to broad customers and also end up leading to the highest margins—because you end up owning the relationships you have with your customers directly (as opposed to someone walking into a store, buying a product, and leaving).
That said, I believe it’s important for businesses to maintain as much control over the shopping experience as possible. We suggest finding a way to minimize the use of third-party ecommerce sites—including Amazon, as much as possible. At a certain point, you will realize how much you are leaving on the table by building a business on someone else’s platform, rather than your own.
For entrepreneurs looking to launch a new product or venture in the world today, you are far better off starting online and then pursuing any kind of brick-and-mortar distribution later on down the road.
Learn how to turn your big idea into BIG business by checking out TRIBE’s Business Starter Kit