The pandemic has devastated many businesses in the U.S. and across the globe. A survey by the Federal Reserve Bank in September and October 2020 shows that 30 percent or about nine million small businesses in the U.S. stated that they will likely not survive until the end of 2021.
Newer data from another study by the Federal Reserve Bank show that in any year without a pandemic, some 600,000 businesses fail. Federal Reserve researchers estimate that business failures from March 2020 to February 2021 are only about 24 percent to 33 percent higher than that. That comes to fewer than a million small businesses.
The additional positive and surprising news is that new business applications in 2020 were the highest filed on record and increased by 24 percent compared to applications in 2019. The U.S. Census Bureau data show that from December 2020 to January 2021, new business applications rose by 42.6 percent. The number continues to rise as there were 440,165 new business applications for March 2021, an increase of 3.4 percent from February 2021.
If you have an entrepreneurial spirit, now is the time to start a new business or add to your current business. You must first study the effects of the pandemic on other businesses, though, and learn from their weaknesses.
Keep in mind that the virus is still around, and new variations are still cropping up, raising the possibility of further lockdowns despite the rollout of vaccines. Your new business idea must be fail-safe against Covid-19 and similar crises this year and for years to come.
Serve the Needs of Evergreen Commercial Establishments
The pandemic showed which commercial establishments continued to operate and thrive despite the crisis. Among these are health facilities, retirement facilities, nursing homes, condominium complexes, apartment buildings, and parks.
You can get a commercial lawn treatment franchise to serve the needs of these companies as well as of homeowners’ associations with common-use areas like small parks. Being near nature and greenery is especially important to people’s well-being and in many cases, the lawn and some bushes provide this soothing environment. The lawn is also part of the overall image of the establishment that gives a first impression to its customers, hence any company will want to always keep this well-tended.
Catering to businesses is better than serving residential clients because commercial contracts are long-term, giving your business more stability. Getting a franchise is more beneficial because you do not have to start from scratch in everything. You become part of an already established and recognizable brand, you will have a template of systems and processes to follow, and you will receive training for yourself and your staff.
Commercial establishments also have continuing needs for cleaning, sanitation, and disinfection, especially with Covid-19 around. You can find a good franchise for commercial janitorial services that include carpet deep cleaning, upholstery deep cleaning, and laundering of drapes. Make sure you use products and cleaning procedures approved by both the U.S. Environmental Protection Agency (EPA) and the Centers for Disease Control and Prevention (CDC).
Another ongoing need for commercial establishments is the repair and maintenance of heating, ventilation, and air conditioning (HVAC) systems. With climate change creating extreme weather conditions, indoor climate control is vital both in hot and cold months. Also, with Covid-19, regular cleaning and maintenance of air filtration systems is a must.
Serve the Needs of an Aging Market
The elderly will always exist as a segment of society. In the U.S., it is a fast-growing segment and last year, the country had the highest percentage of the elderly in the population since 1950, with 16.9 percent aged 65 and older according to Statista. By 2034, the U.S. Census Bureau estimates that for the first time in American history there will be more elderly adults than people under 18 years old. In 2050, 22 percent of the American population will be elderly.
It is a good time to set up continual care retirement communities, complexes that have separate types of housing depending on the level of care needed by the resident. Those who are still independent can live in units equipped with all the features needed by the elderly, such as the absence of steps and the presence of handrails and built-in bathroom shower seats. Those who need partial assistance can reside in assisted living units. A full-care nursing home in the same complex can accommodate those that need full-time care. The complex can also include an adult day care center where families can drop off elderly family members before they go to work and pick them up afterward.
The online retail market is booming, and experts foresee that consumers will continue purchasing online even after the pandemic. You can combine the trend for online retail and the aging market by putting up an online store with a full range of merchandise geared toward those aged 50 and above.
Be Among the Businesses That Will Thrive
Do not make the mistake of doing the same things that led other businesses to failure. You can profit from their wrong business decisions and forge your path to success.
Make the most of what Covid-19 has exposed—the frailties of many business ideas that did not withstand the pandemic. Look for perennial markets that will continue to grow and that you can serve through any crisis.