Will Covid-19 inspire a new wave of British entrepreneurs?

The long-term implications of Covid-19 will be vast and far reaching. The lives of consumers and businesses will certainly not return to how they were for the foreseeable future, while the economic fallout of the pandemic is likely to precipitate some notable shifts within the private sector.

For one, there is a good chance that 2020 will see a boom in the number of people who take the plunge to start their own business. In fact, research has shown that five new businesses were founded every day in April 2020 – representing a 60% year-on-year increase.

There are two key reasons why: firstly, rising unemployment and the shift to homeworking has provided the push needed for many would-be entrepreneurs to act on desires to launch a new venture; secondly, the ‘new normal’ will create a large number of opportunities for agile start-ups as society adapts to our physical world becoming increasingly being replaced by a digital one.

Where do the opportunities lie?

The coronavirus pandemic forced many businesses to pivot as they were simply unable to operate and serve customers via their usual means. With offices closed and people spending much of their time at home, online marketplaces, virtual experiences and home deliveries all thrived as a result.

Positively, entrepreneurs quickly identified this trend and began providing attractive products.

Ashdown Organics is one such example. When the pandemic hit, their founder’s job as a mountain tour guide quickly became defunct and, after a brief stint as an Asda delivery driver, he realised that many people were struggling to get food deliveries. As such, he founded Ashdown Organics to deliver goods from smaller farm shops, bakeries and florists to people across East Sussex.

For innovative thinkers, then, the pandemic has facilitated new entrepreneurial avenues to better meet the needs of the public during the ‘new normal’.

What should entrepreneurs consider?

For anyone considering starting their own business, they must first establish a market fit. Many new businesses fail because they are based on assumptions; the founder believes it is great idea, but the demand is simply not there for it.

To ensure that is not the case, prospective start-up founders must conduct thorough research to decipher the size of the market and the viability of the product or service.

Thereafter, it is wise to keep things simple at first. Have a clear goal of a great product that solves a pertinent problem; then deliver it as well as possible. This is why many start-ups focus on a minimal viable product (MVP) – testing the water and subsequently building an initial customer base before refining or making the business model more elaborate.

For anyone considering founding a business built around a physical product, they must also establish their supply chain. Ultimately, they must be able to access the goods they need to make the product (or import the product itself) and then get that into the hands of customers as quickly, cheaply and easily as possible. As such, product-based start-ups should establish logistics partners early on.

Build a personable brand

It is already becoming clear that many fascinating business creations will emerge from Covid-19. Entrepreneurs can harness that story as they build their brand – as the example of Ashdown Organics shows, there are compelling cases where founders have quickly adapted to launch a product or service that fulfils an important role in the ‘new normal’. These stories should be communicated with potential customers or even investors as it adds an important human element to the start-up.

Ultimately, as entire nations adapt to the ‘new normal’, businesses have a great opportunity to adapt so as to better serve customers. More notably, I believe that we will witness a new wave of exciting British entrepreneurship as start-ups are born that will satisfy people’s changing needs in the current climate.

The Covid-19 pandemic has weighed heavily on us all, but if innovative thinkers are able to spot what consumers need in these trying times, it can hopefully be made a lot easier for us all.

Atul Bhakta is the CEO of One World Express, a position he has held for over 20 years. He also holds senior titles for other retail companies, underlining his vast experience and expertise in the world of e-commerce, trade and business management.