The National Bureau of Economic Research declared on June 8, 2020, that the COVID-19 recession had officially begun. While the idea of starting a business can seem daunting during a recession, many notable companies were started during hard economic times. Walt Disney Productions was incorporated in 1929 at the height of The Great Depression, Netflix was founded in 1997 during the dot-com bubble burst, and Airbnb started during the Great Recession in 2008.
If you want to get a jump start on the recovery and start your own business today, we can help. We've identified seven small business types that are expected to thrive after the Coronavirus Pandemic.
1. Commercial Cleaning Services
Commercial cleaning is a $117 billion industry, and with stricter cleaning standards likely here to stay, these services are expected to grow for years to come. Enhanced commercial cleaning will be critical as more brick-and-mortar businesses reopen, including gyms, salons, and bars. If you are looking to start your own cleaning service, be sure to research EPA-approved cleaning products that won't negatively impact the environment.
2. Information Technology Consulting
In May 2020, roughly 50% of US employees worked remotely, up dramatically from the 5.2% of before the pandemic. While this increase has sped the adoption of telecommuting solutions like Zoom, Microsoft Teams, and Slack, many companies have struggled to implement these changes.
IT consultants are needed now more than ever to help implement and maintain new telecommuting standards. This includes efforts to provide a seamless experience for remote employees over VPNs while maintaining security for employees and their work.
3. Health & Fitness
Even with most gyms closed amid health concerns associated with COVID-19, people still want a way to remain fit. This has increased the demand for at-home workout solutions. In March 2020, Americans downloaded over 2.6 million home workout apps. Other at-home fitness options have also increased during the pandemic, including a 94% jump in subscriptions for Peloton, a stationary bike that allows the rider to join workout sessions virtually.
Personal trainers and health coaches of all kinds can capitalize on this rise of popularity by offering their services virtually. Trainers can meet clients via video calls and check in over email and text to share tips, tricks, recipes, workout plans, and more.
4. Delivery Services
At-home delivery services have seen record growth and adoption during the pandemic. Delivery apps like Instacart saw downloads increase by 218% at the start of the pandemic, while similar services like Walmart Grocery and Shipt experienced large surges of their own. Whether it's through an app or starting your own service, high-risk individuals will likely be seeking errand and delivery services for the foreseeable future to avoid the risks of visiting crowded stores.
5. Online Sales
Amazon's stock increased by over 60% in 2020. This growth is on par with online shopping growth, which has increased by nearly 70% while people are stuck at home. Industry experts expect to capitalize on this growth far beyond the pandemic. With relatively low startup costs compared to traditional brick-and-mortar storefronts, now may be your best time to start selling online.
Best of all, with dropshipping or affiliate marketing, you won't even need to worry about inventory and shipping. Small business owners can also capitalize on the success of larger online retailers like Amazon and eBay by selling your products on their platform for a fee.
6. Home Improvement
While families are spending the majority of their time at home, home renovations and improvements are exploding in popularity. Home improvement stores like Home Depot and Lowes are expected to report record sales growth, but there may be many ways to turn this demand into your own small business. From contracting and construction services to offering advice and supplies to DIYers, there are many opportunities to help people realize their home renovation dreams.
7. Teletherapy Services
It's no secret that COVID-19 has taken a toll on the mental health of countless individuals. To help, some professionals have started to offer their services online. These teletherapy sessions can occur through HIPAA-compliant video and chat services and have been critical in helping those struggling with depression, anxiety, and other mental health issues. This has also opened the door to countless businesses that offer apps and technical services.
Post-COVID Business Challenges
While there are some key areas of opportunity for a post-COVID world, there are also some new challenges and opportunities that any new business will face. Some important considerations to think through before starting your own small business include:
- Cultivating a strong online presence
- Providing personalized experiences from afar
- Successfully communicating your launch
- Connecting with potential customers using technology
- Accepting contactless payments
- Accessing capital with more restrictive lending
- Fewer people buying due to rising unemployment
Get Started With Business Services From Swyft Filings
No matter what type of business you want to form, our Business Specialists can help. We've helped thousands of small businesses get started the correct way. Best of all, we'll take care of the paperwork, so you can focus on growing your business. Get started today by comparing business types using our Incorporation Wizard.