The pandemic has been an excessively tough time for us all and some businesses have really suffered, forced to close for months on end, with no real resolution to the situation in sight. And, sadly, many businesses have had to close permanently because of the covid-19 crisis, unable to recover the losses they sustained.
But, as they say, necessity is the mother of invention and crisis situations often see new ventures being launched, as well… and, in fact, some of the biggest brand names we know today were launched during turbulent periods of history.
Airbnb, for example, started in 2008 during the global recession. You might not have thought that an economic downturn would be a good time to launch a company, but just look at how well the brand is doing now!
And Walt Disney (who, incidentally, saw his first studio fall into bankruptcy in 1923) launched Walt Disney Productions in 1929, just in time for the Wall Street Crash and the Great Depression.
So what is it about crises that seem to make it a good opportunity for startups to establish themselves? Well, first of all, these situations demand innovative thinking and solutions to new problems, so new markets open up and if you can identify these, you’re onto an instant winner.
Furthermore, because unemployment often increases during these periods (as has been seen over the course of the pandemic), there’s lots of amazing talent out there, ripe for the picking. So you can find people keen to do something new and different, bringing their ideas with them.
And access to funding doesn’t necessarily disappear either, with investors often keen to put money into small-scale ventures at this time. Because funding can be in short supply during crises, startups are forced into being more frugal and spending more wisely, which only benefits them in the long run.
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