Officials have announced that California will likely reopen on June 15, potentially fueling an entrepreneurial boom. A recent piece in Forbes delves into this possibility, noting the time we spent pent up during the pandemic may have provided an opportunity to foster new ideas. As such, entrepreneurs may come out of the worst of the pandemic ready to make their mark on the business world.
Is there data to support this theory?
Although it is still early in the process, there is data to support the idea of an entrepreneurial boom. Census data shows business formation declined at the beginning of the pandemic but numbers for 2021 are already on the rebound.
Why would this boom be significant?
The workplace has changed. The pandemic forced the use of a remote workforce — and it worked. We now know that we can put together a productive workforce without requiring everyone to be in one location. Have a great tech guy in San Francisco but an innovator you want to use in New York? No problem. The vast majority of workers are now comfortable using Zoom and similar remote meeting spaces to help make these types of collaborative workplace efforts a success.
There is also more capital available to help fund these startups then was present pre-pandemic. These two factors could add up to some strong numbers when it comes to business formation in 2021.
What should I know if I want to start my own business in 2021?
It is smart to take some basic precautions since there are likely a lot of entrepreneurs with great ideas looking to move forward this year. Two steps that can help include:
- It is important to choose the right entity when moving forward with business formation. For some, a partnership may work. Others may benefit from formation of a corporation or limited liability company, thereby enjoying the additional protections these types of entities provide.
- It is also wise to put together various contracts, including agreements for hiring of key personnel, selling goods or services, and protecting your ideas from being disclosed to competitors.
These are just a few steps to help better ensure your idea becomes a reality that can grow throughout 2021.