Top 5 Reasons Why 2022 is the Best Year to Start a New Business
If you’re thinking of creating your own business, the best year to do it is 2022! The startup sector is thriving, funding is readily available, and several government initiatives are in place to assist new firms.
With the COVID-19 pandemic came many opportunities for new companies to disrupt outdated industries and fill gaps in the market. This article will discuss why this is an ideal year to start a new company or business.
1. Increased Downtime
During the pandemic, people had more time on their hands than ever before. People no longer had to worry about commuting to work and were instead granted the freedom of working remotely. Increased downtime has allowed more people to venture into entrepreneurship and start their own companies or be their bosses.
According to the Census Bureau, more than 4.4 million new companies were formed in the United States during 2020 — the most on record. That’s a 24.3% boost from 2019 and a 51 percent increase compared to the 2010-19 average.
Ultimately, the increased downtime due to dislocation and working remotely will fuel the fire for more people to start businesses in 2022.
2. Inexpensive Technology
Economies of scale and advancements in technology have made starting a business much cheaper than it used to be. Companies needed expensive office space, equipment, and furniture in the past. Today, owners can run most companies from anywhere in the world with simply a laptop and internet connection.
Companies can save money by using more affordable technology
Inexpensive and cloud-based solutions such as Google Apps for Work, QuickBooks Online, and Basecamp can help businesses manage their finances, projects, and customers monthly. Also, using these tools can help companies to reduce their reliance on expensive outside consultants.
Due to economies of scale, the price of many tech products and services has decreased in recent years. Enterprise-level products and services are now available to businesses at a fraction of the cost.
Economic trends in technology favor small businesses and their customers
Economic trends in technology favor small businesses and their customers due to the following reasons:
The development of cloud-based services
Cloud-based services have made it easier for businesses to access technology without purchasing and maintaining hardware and software.
According to research, 79 percent of today’s businesses agree that technology has become essential to operating. Moving forward, more traditional and technology-averse companies will be unable to compete with the current economic climate.
The advantages of cloud-based technology are endless but can help companies, especially when it comes to scaling, collaboration, and overall flexibility. This has made it easier for businesses of all sizes to get started quickly and at a lower cost.
The proliferation of mobile devices:
There are now more mobile devices in the world than there are people. This trend shows no signs of slowing down and provides a significant opportunity for small businesses to reach new customers through mobile apps and websites.
The rise of free access to social media
Digital marketing wouldn’t be possible without the accessibility of social media. Social platforms are a powerful marketing tool businesses can use to reach a large audience at a relatively low cost. Social media platforms like Facebook, Twitter, and Instagram offer companies a way to reach out to potential customers for free. Businesses can attract new customers and continue growing their existing customer base by creating engaging content.
Technological Economies of Scale
Tech companies have achieved economies of scale to offer businesses products and services consistently lower costs. This is primarily due to the volume of sales they generate and the efficiency of their production processes.
In today’s world, startups and companies have more access to technology than ever before. One way businesses can use technology is by using it to streamline their operations.
Technology offers small and large businesses many opportunities to grow and succeed through automation. Popular companies like QuickBooks and Xero offer accounting software that can save businesses time and money by automating tasks like invoicing and bookkeeping.
Communication software and apps have revolutionized the way most organizations operate. The development of communication technology and applications has allowed businesses to have workers all around the country and even internationally.
Technology is a powerful tool for all businesses, but only when used to your advantage. It can help you promote your business, reach new customers, and streamline your operations with the right approach.
3. Leveraging Accessible Funding
Getting access to funding for your startup has never been easier than in 2022. With the number of venture capitalists and angel investors on the rise, more startups can get the funding they need to get off the ground easier.
Many government initiatives have been put in place to help support startups. Since the pandemic began, startups have taken advantage of several government initiatives, including low-interest loans, tax breaks, and funding opportunities.
For instance, the Small Business Administration (SBA) had several lending programs to help businesses with financing during Covid. Through these core lending initiatives, $44.8 billion in funding was disbursed to small enterprises throughout 2021 via more than 61,000 loans.
Many of these programs are designed to help small businesses and startups, so it’s a great time to start a business if you’re looking for funding. There are also many private funding sources available, so there’s no need to limit yourself to government programs.
Applying for Funding
When applying for funding, have a strong business plan that outlines your goals and strategies and how you plan to achieve them. Organize financial projections and an actionable marketing plan. If you don’t have a solid business plan, it won’t be easy to convince investors to give you funding.
When seeking funding, another thing to keep in mind is that you’ll need to offer something in return for investment. This could be equity in your company or a share of the profits. You’ll also need to be prepared to give a detailed explanation of your business and how the investment will help you grow.
The best way to find funding is to network with other entrepreneurs and investors. Attending startup events and meetups can be a great way to connect and learn about funding opportunities. You can also look for funding through online platforms such as AngelList or Kickstarter.
No matter what route you take, be prepared to do some research and put in the hard work necessary to get your startup off the ground. With perseverance, you’ll be on your way to success.
Harnessing new markets and investors to finance your business idea
Harnessing new markets and investors to finance your business idea allows new businesses to grow and expand.
By reaching out to new markets, you may find more money not available through traditional channels. You can bring in the capital necessary to get your own business up and running by attracting new investors. While there are no guarantees, pursuing new markets and investors can be an intelligent way to finance your business idea and capitalize on your target audience.
How to attract new investors
There are many ways to attract new investors. One option is to attend trade shows and other industry events. These gatherings provide a forum for many entrepreneurs and businesses to exhibit their products or services and meet with potential customers.
Another option is to launch a crowdfunding campaign. This approach allows you to solicit funds from many people, often online.
Additionally, you can seek out venture capitalists and other investors who may be interested in funding your business.
Whatever approach you take, it is essential to remember that new markets and investors can be a great way to finance your business idea. You can secure the capital you need to get your business off the ground or keep it running smoothly with the right strategy. Pursue new markets and investors with confidence, and you may be able to achieve your business goals.
4. Open markets
2022 has never been a better year due to the effects of recent consumer behavior in open markets. The increase in e-commerce and the decrease in brick-and-mortar stores have made starting an online business more accessible. And with more people working remotely, there’s a growing need for products and services that companies can deliver straight to your door.
Understand how consumer behavior affects open markets
Open markets are good news for entrepreneurs looking to start a business in 2022. Why? Because it offers more growth opportunities, and you’re not limited by your country’s borders in an open market. You can sell to anyone globally, which gives you a more extensive potential customer base. And with more businesses operating in open markets, there’s more competition, which drives innovation and growth.
There are three types of markets: open, closed, and regulated. Open markets are free to trade with any other country in the world. Closed markets have restrictions on whom they can trade with, while regulated markets are somewhere between.
There has been a shift from closed to open markets in recent years. This is due to the increase in global trade and investment and the decrease in barriers to entry. As a result, more businesses are starting up in open markets.
How to gain an edge over the competition and stay ahead of changing trends in open markets
As a business owner, you need to gain an edge over the competition and stay ahead of changing trends in open markets.
When thinking about starting a new business, keep the following in mind:
- Stay up to date with the latest technology.
- Be aware of global trends and how they affect your industry.
- Innovate and find new ways to serve your customers’ needs.
- Understand the competition and what they’re doing better than you.
- Find ways to differentiate your business from the competition.
- Invest in marketing and advertising that reaches a global audience.
- Build a strong team of experts who can help you succeed in an open market.
By following these tips, you’ll be well on your way to starting a successful business in an open market.
5. Accessible Mentorship
Accessible mentorship can be the differentiating factor in a successful startup. As an entrepreneur, it can be challenging to find the right mentor.
In 2022, there will be an increase in the number of programs and resources available to help you connect with a mentor. Now is the right time to begin seeking guidance.
Some things to look for when choosing a mentor:
- Look for someone with experience in your industry.
- Find someone who’s had success starting and running a business.
- Choose a mentor who’s willing to give you honest feedback.
- Find a mentor who shares your values and vision for your business.
- Choose someone who’s accessible and responsive to your needs.
By finding the right mentor, you’ll gain the knowledge, skills, and support you need to start and grow your business in an open market.
Mentorship can help you avoid costly mistakes and grow your business at a faster rate
Find a mentor with experience in your industry and whom you can trust. Take time to learn from their successes and failures so you can avoid making the same mistakes in the future. Look for a mentor who will be brutally honest with you, giving constructive feedback so that your business can grow faster—having someone to guide you in the early stages of your business journey can be invaluable.
Experienced professionals can help new business owners navigate the challenges of starting a business.
Experienced professionals can help new business owners navigate the challenges of starting a business as entrepreneurship is rising and more people are starting businesses.
According to a study by the UPS Store, 70 percent of small businesses that received mentoring survived more than five years – far superior to the survival rate for businesses that didn’t welcome mentorship. The same poll revealed that 88% of company owners with a mentor felt it was critical to the success of their business.
Join an incubator or accelerator program
By joining an accelerator or incubator to help with your startup, you will access more resources, get exposure to more experienced professionals, and be part of a community of like-minded individuals.
The National Business Incubation Association stated that incubators help new businesses survive and grow during the critical early stages of development by providing many companies with support resources and services. Statistically, incubated firms have an 87 percent survival rate, and 84 percent continue to operate in their local areas, according to Forbes.
Some of the benefits of joining an incubator or accelerator include:
- Access to experienced professionals who can offer advice, guidance, and new ideas.
- A community of like-minded individuals who are facing similar challenges.
- A network of contacts can help you get your business off the ground.
- Access to resources that can help you save time and money.
- Funding opportunities
These programs can offer invaluable support to new businesses as they navigate the challenges of starting up in a competitive market.
M Accelerator has several programs available to startups. We have a dedicated workspace in Los Angeles, the third-largest and fastest-growing tech ecosystem in the United States. Throughout this intensive program, companies will imagine, explore, discover, and expand their potential as startup founders.
If you’re interested in joining one of our accelerator programs, our team can help you get started! To learn more about our program, the best approach is to rsvp to our Founders Meeting.
2022 is the best time to start a business because the global economy is strong, and companies have many opportunities to succeed. Open markets offer more chances for growth, and mentorship programs can provide entrepreneurs with the guidance they need to start and grow their businesses.