While launching a startup is a challenging proposition in the best of circumstances, the process becomes all the more difficult to tackle when there is a pandemic raging unchecked in all corners of the world. Here in NSW we have been relatively lucky compared to other States and the rest of the world.
Many people have seen opportunities to start a new business during the pandemic, and as a web designer I have been impressed with the ideas people have been coming up with despite the challenging problems lockdowns have caused. I have met people who decided they no longer want to work for someone else and have come up with solutions to solve other people's problems. Let's face it, solving people's problems, helping them increase their income or saving them money is the key to starting a new business venture.
Starting a new business in Sydney NSW at the time of a global pandemic may sound like a daydream, but experts believe this is the right time to begin. While there is no denying the fact that Covid-19 has forced some trends in different directions, all aspiring businesspeople need to do is to just unravel the after effects of the pandemic and capitalise on the opportunities offered.
Sydney is considered to be the startup capital of Australia, where over 50% budding entrepreneurs have made Sydney their home.This is the opportune moment to take the jump as the NSW government is committed to providing strong support for startups by way of grants to help them in finding their feet in such testing times.
As the global economic crisis is not expected to return to normal for quite some time, low-cost business ideas will play a massive role as consumer behaviour is set to take a turn in a different direction with hesitancy in stepping out to shop. As a result, most of the traffic will be inclined towards digital platforms.
A few business ideas you can kick-start in no time include:
Start an online consultancy business: Connect virtually with your clients and expand your reach in the fields of music, fitness, cookery, photography etc. or anything else you are good in.
Online tutoring: If you are from the education sector, go ahead by offering online tuition as almost the entire student population of the world is suffering due to closure of institutes.
Form a freelancing platform: These platforms are very popular and you can launch yours in a day with minimum investment. You can list projects for web designing, social media marketing or content marketing. This is actually what I do as well as publish this blog (and two others).
Home care for the elderly: Since every country has an ever-aging population, home care for the elderly will always remain a profitable business. Grocery shopping and cooking are just a few services that are valuable during a pandemic.
Cleaning and power wash service: The cleaning industry offers unlimited opportunities for first entrepreneurs because of the need to keep homes, hospitals, aircraft, roads etc clean at all times because of Covid.
Whether you are beginning a new venture from scratch or investing in an existing franchise, knowing who and how to approach can help you find the best finance options for your startup. Some of the main types of finance available are:
Equity financing: Where a business funds its growth solely through money raised personally by the business owners, family, friends or private investors through the sale of the company's shares. This mode of financing is used by start-ups who require small business loans for a short term till they reach maturity. Keep in mind, that should the business fail, personal relationships between families and friends may turn sour.
Angel investing: If you are building a start-up in Sydney, one of the most important source of funding is through Angel investors.These people typically invest their own money in early stage start-ups, as a one time investment to make it grow in exchange for ownership equity in the company. However, remember you will need to give up a share of your business and finding the right angel investor takes a lot of time.
Bank financing: Banks often offer a fixed-term loan against collateral like business assets, over a set period of time with interest. Compared to other types of funding, banks offer good rates. The only drawback is that the eligibility criteria for small business Australia are tough and difficult to meet.
Online lender financing: This is a special type of equity involving funding from agencies like MaxFunding or Moula for online small business loans in Australia and receive the money quickly, sometimes within 24 hours.
While crowdfunding is a legitimate way to raise capital, borrowers would have to part with something in return in order to get the cash. The ease in which a customer gets a loan can turn into a disadvantage in the long run. Since automation plays a major role in online lending, most customers will find it tough to repay the loans.
There is always a degree of uncertainty involved in starting a new business. Apart from the journey having its fair share of bumps, the investment can drain one both physically and emotionally. It is therefore important to assess beforehand if you need a fundraising platform for your start-up and if it will assist you in propping up your business efficiently. While opening a new business amid a global pandemic may not seem ideal, the type of resilience shown by small business owners in Sydney, is enough to move them forward.