Starting a Business in 2020

Launching a new venture is scary under the best circumstances. Many challenges exist, including funding your business, creating your product or service, and identifying your addressable market. As we all know, these are not normal times. With the headwinds from the health crisis, economic crisis, and social challenges all converging, has there ever been a more frightening time to start a business than 2020? However, with so many people out of work or working from home, many folks are jumping into entrepreneurship for the first time.

The last deep recession can teach us something. Some amazing companies emerged from the previous financial crisis, including companies like Uber, Venmo, and Slack. Since then, the power to leverage technology has lowered the barrier for first-time entrepreneurs. Entrepreneurship is still extremely precarious. The Bureau of Labor Statistics states that nearly half of all new businesses fail within five years, and almost 20% fail during the first two years. Despite these stats, I would argue that it has never been easier to start a business than in 2020, and technology is the main reason.

Tools and systems are more accessible and cost-effective than ever. The explosion of business applications in recent years has enabled new business owners to leverage powerful technology at consumer rates or even for free. Here are four reasons why launching a business in 2020 is easier than ever.

1.  Incorporating and starting your business takes minutes. Get your company organized and incorporated with tools like Gust or Legal Zoom. These systems make it incredibly easy to set up a C corporation, S corporation, or LLC depending on your situation and goals. Pay yourself and your employees using Gusto, which provides payroll services at a fraction of the cost of older payroll providers. Set up your accounting quickly with Quickbooks or Xero. Get your business name and brand going with Namelix and Brandmark. Jumpstart your email, productivity, and website name using Google Suite. Technology has made it so simple that you can do all this in a day.

2.  Leverage the power of the cloud. Have a product to sell? Create your Shopify and Amazon storefronts. Need to build a website? Log into Wix or Squarespace. Need to market to your customers? Get Hubspot or Mailchimp going. Need a secure, redundant cloud infrastructure? Access AWS. What once used to take armies of people can now be done with just a keyboard and mouse. The power of technology to help a budding entrepreneur has never been broader or more accessible.

3.  Working from home is widely accepted. The pandemic has made working from home mandatory in many cases. Increased bandwidth, teleconferencing, and powerful home computing options make it easier than ever to stay connected and project a presence. LinkedIn, Twitter, and Facebook can all be used for free and provide social media outlets for marketing your business and creating your personal and professional brand. As a result, remote collaboration is now ubiquitous using Zoom, Skype, or Google Meet.

4.  Implement the entrepreneur’s playbook. The decentralization of the Silicon Valley model is ongoing and will accelerate in years to come. Learning how to follow and emulate this playbook is just a Google search away. Dozens of amazing organizations exist to support startups and entrepreneurs. I am grateful to be part of Startup Grind, which assists entrepreneurs around the world. A new entrepreneur can join a local startup organization, apply to accelerators, and access a wealth of information from successful entrepreneurs and helpful venture or seed funds. Resources for women entrepreneurs and people of color are also increasing on a daily basis, hopefully expanding access to entrepreneurial success.

We are going through a transformative period that will alter the economy and create new business models. I'm bullish that technology will help us get out of this pandemic, and I am excited about the new companies and services that will emerge from this crisis, or opportunity, depending on your viewpoint. I am fortunate to work with entrepreneurs every day and know full well the risks they take pursuing their vision. I see this every day working at 8base. Courageous entrepreneurs will seize this opportunity and develop innovative products and create disruptive services, leveraging technology to make it happen. Remote work and collaboration are not a barrier to success but part of our new shared experience. Paraphrasing Dickens, it is the best of times and worst of times to start a business—why wait to get started?

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