While the COVID-19 pandemic has had a huge impact on the business world, it is still possible to find a niche where an entrepreneur can make a profit. Even during a period when most factors in the economy are unfavorable, there are always ways for smart entrepreneurs to take advantage of the situation.
Dan Lok, a leading entrepreneur, explains how you can formulate a working business idea and profit during the pandemic.
Search for Market Opportunities
While the pandemic was still in its early stages, smart business owners jumped on the opportunity to start making hand sanitizer and face masks. As the pandemic progressed, the market became glutted with these items, meaning that these business ideas are probably not profitable today unless your company can create a superior product that beats the competition.
Nevertheless, there are in-demand businesses that you can launch in order to take advantage of the different conditions that persist in our economy. Dan Lok explores a few of these options below.
Cleaning Services
Cleaning services were not in need during lockdown because people were reluctant to enter others’ homes or to have cleaners enter theirs. As the economy begins to reopen, janitorial services are in demand. This applies to both home cleaning and business cleaning companies.
Entertainment
Entertainment is always needed. Especially during the early months of the pandemic when many people were not leaving their homes for anything other than groceries, they were a captive audience in need of any kind of amusement. Immersive apps, virtual reality or VR, and dating apps may be good ways to get into the market.
E-Learning
E-learning is another area where there is a high potential for growth. Many students and teachers have become accustomed to e-learning, and there is some speculation that the education world will begin to move away from an in-person model because people are enamored of the convenience of e-learning.
Pharmaceuticals and the Medical Industry
If you are interested in becoming involved with the pharmaceutical or medical industry, there is no better time to start a company. Focusing on the needs of aging people could be especially profitable because the baby boomer generation is reaching their elder years. Medical supply and home care businesses could be greatly profitable.
Sell Online
If you have some computer ability and a good home technology setup, you may be interested in selling items online. Shopify makes it easy to create your own online store using dropshipping. This means that you never have to see the products you are selling, but you are completely in charge of their marketing. Dropshipping can be highly profitable and is a good business venture for at-home parents.
Childcare
Childcare is another area that is showing great potential for growth. Many daycares that closed during the pandemic will never reopen, leaving a vacancy in the market. Childcare businesses can be home-based, in centers, or in the clients’ homes. Parents may have been coping with full-time parenting and full-time jobs simultaneously for over a year, but the situation cannot last much longer.
Running Errands
Starting a business where your employees run errands for clients could be a great idea. Many people are still reluctant to leave their homes for anything but the basic essentials of life, but having someone to go to the post office, pick up dry cleaning, and go grocery shopping can be hugely helpful. The success of DoorDash, Uber Eats, and Instacart points toward market availability, especially if your company can offer better services with lower fees.
Become a Consultant
If you have lost your job or are looking for a better opportunity, becoming a consultant in your field could be a profitable situation. Position your industry experience to attract clients and let them know exactly what you can provide for them. Learning to market yourself as a consultant can be challenging, but many businesses need help today.
Create Your Niche
Whenever someone starts a new business, the general advice is to create a niche where you are most likely to be successful. No one company can be all things to all people unless they are a giant like Amazon. Look for areas with little direct competition and where your product or service is not available from anyone else.
Economic Recovery
Fortunately, the economy is projected to revive during 2021 as the global pandemic runs its course. This may after all be the best time to start a new business since you will have more customers and they will have more disposable income in the near future. The decision to use your own money for a new business can be difficult, but business lenders are not giving money out in the way they once did.
Creativity and resourcefulness are always needed to become a successful entrepreneur, and during the pandemic, this is doubly true. Dan Lok recommends doing a full market analysis in the field you wish to join and determining whether or not your idea is likely to take off.
