Pandemic inspires thousands to start their own business

As we outline some of the most common reasons for going it alone and running your own start-up in 2021, take a moment to consider the opportunities that lie ahead.

A financial crisis is a great, if courageous, time to launch a business

Many of the world’s most successful businesses have been founded during times of economic hardship. Microsoft was founded during the oil embargo recession of the early 1970s and the Great Recession in 2007-09 saw a wave of tech start-ups hit the marketplace.

The result of the coronavirus crisis is viewed by many entrepreneurs as an opportunity rather than a disadvantage. Starting out with a clean slate in 2021 is helpful rather than a hindrance, allowing you to be agile and fill gaps in the market where competition has weakened.

You want to be in control of your work-life balance

Running your own business is challenging but you have the final say over all aspects of your start-up. Although that might seem like a daunting prospect, it’s actually a very liberating one. Being your own boss gives you the freedom to work as little or as often as you want. Set your own parameters and expectations, rather than your line manager. Your work-life balance will thank you for it later.

Tens of thousands are already making that change of direction in their lives according to recent official data. The Office for National Statistics (ONS) revealed that the number of new business start-ups registered in H2 2020 was up considerably year-on-year, with July 2020 setting a record by registering over 81,000 new firms across the UK.

Furthermore, a survey by Enterprise Nation in December 2020 found that one-in-five UK adults would like to start their own business, with that figure rising to more than one-in-three (34%) among 18-to-34-year-olds.

The e-commerce opportunities are more lucrative than ever

UK consumers were forecast to spend a massive £141.33 billion online in 2020, up 34.7% year-on-year from 2019. The emergence of e-commerce as a solution to our pandemic problems has led to e-commerce accounting for over 30% of all retail sales in the UK – and the online opportunities are unlikely to end there. eMarketer anticipates e-commerce sales to hit £148.89 billion by 2024 because consumer habits “formed during lockdown” look “set to endure”.

The new entrepreneurs of this year will be looking to de-risk their new venture as much as possible and the choice of ecommerce platforms available has increased significantly in the last 12 months.

You’ve had time to refocus on your personal strengths

Time is something many have had in abundance in the last 12 months, with lockdowns restricting our day-to-day movements. With more time spent at home, personal reflection has been an inspiration for many entrepreneurs to recognise and play to their own personal strengths going forward. When you plan and launch your own start-up business, based around your talents and passion, your energy shines through everything you do. Everyday work becomes more enjoyable, making a living from your gifted talents.

Your available talent pool may never be bigger

The unfortunate reality of the COVID-19 recession is that hundreds of thousands of professionals have been forced out of their jobs. Talented people that are unable to continue doing what they enjoy, through no fault of their own. Consequently, start-up businesses will never have a more vibrant talent pool to choose from, which is a solution to one of the biggest bottlenecks for new firms – finding great employees you can rely on.

Put the building blocks in place for your start-up with our free webinar

If you are planning to start your own business from home or in your own workspace, we can help you to get your new venture off the ground and avoid any potential pitfalls. Our free, 40-minute recorded webinar can help you define an accurate business plan, focus on the right structure for your business and the tax and VAT considerations for you as a fledgling entrepreneur.

We also offer free, no-obligation consultations to discuss the next steps for your start-up, from accounting and bookkeeping to payroll and planning your taxes. Call our friendly, experienced team today on 0131 665 0771 to book a consultation in-person, over the phone or via virtual meeting, whichever makes you feel most comfortable.

Date published 9 Feb 2021

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.