Today, in the midst of everything that is happening in our country and in the world, is the best time to launch a business.
On the one hand, I fundamentally believe that there is never a "wrong" time to start a business. Either way, you will face challenges. Either way, you will have to deal with some level of competition. So instead of waiting for the perfect moment, you can also dive right in.
But more specifically, the economy right now is fertile ground for entrepreneurs and business owners. Interest rates are lower than ever. Millions of people are looking for work, which means job markets are plentiful. The rise of "work from home" has opened up a larger pool of talent to choose from when hiring. And more importantly, major industries are showing their vulnerabilities, which means an opportunity for entrepreneurs smart enough to invent new and compelling solutions.
There are a handful of trends that have emerged over the past year that will no doubt start to accelerate as we head into 2021. For one thing, as we get closer to vaccinating for the coronavirus, there will be a massive amount of demand from consumers who have been waiting to travel, go to concerts and sporting events, and even just return to shopping at retail and dining at their favorite restaurants. At the same time, I think some of these other trends, like remote work and shrinking workforces, will continue to accelerate as well, so finding ways to capitalize on both will be crucial for entrepreneurs.
Whether you're looking to launch a new product or start a business in the near future, here are the three big trends I encourage you to watch closely in 2021.
Health and wellness products are certainly going through a lot of momentum right now.
Over the past year, I've spoken to dozens of entrepreneurs in a wide range of industries: supplements, at-home genetic disease testing, testing, home fitness, you name it. All of these businesses have quintupled in revenue in the last six months. And while I think this growth will probably flatten out a bit initially after there's a COVID-19 vaccine, I also foresee this trend coming back with even more sophisticated products soon after.
For example, in the home fitness market alone, eBay sales of dumbbells and weight plates are up about 1,500% this year compared to 2019. Sales of private label vitamin and mineral supplements increased 1,286% compared to the previous year. And according to CNBC and a study by consulting firm Bain & Company in May, "Only about 3% to 4% of grocery spending in the US was online before the pandemic, but it's risen to 10%." at 15%".
If there's one thing that the coronavirus really showed society as a whole, it's that many of the ways we think about taking care of ourselves (going to the gym, going to the supermarket, etc.) can also be done in some way. at home. I don't think that after COVID-19 the common person will stop leaving their house and just want to exercise at home and have their groceries delivered. But more and more, people have certainly found it a convenient alternative on certain days when they need it.
Many companies outsource manufacturing to other countries: China and Mexico are two of the most common. But depending on how the trade wars between the United States and these other countries continue, they will have a major impact on many businesses here in the states.
That being said, there has also been a lot of innovation and investment around manufacturing automation. So, depending on the product, the price, and the consumer base you're targeting, it might start to make sense to manufacture rather than outsource those efforts to another country. You can also control all parts of your process much more easily than if you were doing it abroad. For example:
The trend that is emerging is that more and more entrepreneurs are beginning to realize how risky it is to have their entire company dependent on one supply chain or one source. manufacturing cio. If something happens politically, or even just with their business partner, they suddenly find themselves in a tight spot. So if you're launching a new product or company, I highly recommend that you at least have other supply chain options at your disposal and know what the potential implications would be if something went wrong.
The e-commerce is quickly establishing itself as the best and easier way to launch a product and/or business.
From a testing standpoint, it's much more efficient to interact with and gather feedback from customers online than if you were trying to do something similar in a traditional business type. Facebook and Google are still the easiest ways to market to broad customers, and they also end up generating the highest margins, because you end up owning the relationships you have with your customers directly (as opposed to someone walking into a store, buying a product and leave).
That said, I think it's important for businesses to maintain as much control as possible over the shopping experience. I would try to stay away from third party eCommerce sites. For many businesses, Amazon-like platforms drive the bulk of e-commerce sales. However, at a certain point, you realize how much you're leaving on the table by building a business on a third-party platform instead of driving customers to your own website and capturing their information.
The reality is that the coronavirus has hit retail and family businesses hard. Many have transitioned to e-commerce or have gone out of business. I continue to believe in retail and believe that in the long term the category will return and thrive in new and exciting ways.
But especially for entrepreneurs looking to launch a new product or company in today's world, it's much better to start online and then look for any kind of physical distribution later in the future.