Why 2021 Will Be The Year Of The Entrepreneur

Why 2021 Will Be The Year Of The Entrepreneur

Why 2021 Will Be The Year Of The Entrepreneur 

By Mark Wager

What do Netflix, Microsoft, MTV and Disney have in common? In addition to being highly successful global brands they all started during difficult economic times. When the majority of companies where struggling these companies not only started their business but also thrived, to the extent that today they are among the worlds most successful companies. It’s difficult to predict what will happen in the business world in 2021 especially after the uncertainty of the 2019 pandemic which saw its effect in 2020, but what history has shown us is that during times of economic uncertainty, there will be people who find opportunities that others can’t see. This is why I believe 2021 will be the year of the entrepreneur. In a years time when we look back on 2021,  I believe we will be highlighting successful businesses many of which won’t exist at the time of writing this article.  This is the time of the entrepreneurs. 

There will always be problems that need solving. 

The essential core of any successful business is that they provide a solution to a problem. What happens during difficult economic times is that there are a host of new problems that arise each of which requires a solution which in turn provides opportunities for entrepreneurs.  If you want to be a successful entrepreneur then you need to start thinking differently instead of trying to copy other businesses. You  need to ask yourself what problems do people have on a daily basis and how can you solve those problems. Netflix saw how people found it difficult to go to their local video store to hire a movie so they started a service which would send movies directly to people. After several years they adapted again and are now a streaming entertainment system. People will always pay money to make their life easier. You just need to find a way to  help them do that.

The economy shrinks, it doesn’t disappear. 

The world has been through several economic downturns and every country has experienced a recession at some time, yet in each and every single circumstance the economy has recovered. When the economy is difficult its easy to focus on the negative.  I’m sure we all know someone who has lost their job or is struggling financially yet we can’t forget that this state is not permanent, it’s part of an unfortunate cycle. If you are an entrepreneur you need to remember that when the economy shrinks the marketplace turns into a pyramid with a few selected businesses at the top getting the majority of the market share while the majority of the other businesses struggle over what’s left. As an example, several large corporations started streaming services this year and while some have already closed down despite millions of dollars in investment, Disney Plus has thrived and exceeded its expectations. What this means is that if you want to be successful in business then you can no longer aim at being good because in difficult times good is not enough, you have to aim to be great. 

Get ahead of the curve 

When one industry struggles you will find another that thrives. I have several clients, Leaders who I coach on a regular basis who are in industries that are struggling like hospitality and tourism which are obvious examples, yet I spoke to a new client last week who is in the middle of expanding her business and focuses on beauty and skin treatment. During the past year, so many people have started using videoconferencing facilitates such as Zoom etc that they have become more aware of how they look and as a result she is gets many more clients who want her beauty services. What this highlights for me is that successful entrepreneurs look at the business world and they anticipate what trends are about to happen. This allows them to position themselves so that they can take advantage of the new opportunities that arise.

Necessity breads innovation. 

Here’s something that many entrepreneurs don’t tell you. We often think of entrepreneurs starting with a dream yet the reality is that so many entrepreneurs started their businesses out of necessity. They had no choice, they either lost their employment or struggled to find a job so in order to survive they started a business. Sir Richard Branson, one of the worlds most well known entrepreneurs dropped out of school at fifteen and during an interview with CNN money he said “I was seen as the dumbest person at school” he started his business out of necessity and now it’s an international corporation. When times are tough people find themselves backed into a corner struggling to get by but in these moments people discover the entrepreneur within and the words of those who didn’t think they were good enough echo in their mind as a constant motivation. It’s remarkable at what people can achieve when they have no other alternative. 

It’s easier than ever to start a business. 

About ten to twenty years ago if you wanted to start a business you would need to rent an office and hire equipment all of which would have cost money and lots of it but today the world is very different. We are more connected than ever before which means an entrepreneur can approach a new business in a very different way. During the coronavirus pandemic e-commerce rose globally around 40%. People’s spending habits have changed in addition the rise in social media now means you can market yourself in ways that weren't available in the past. Many of the barriers that prevented businesses from starting trading now no longer exist. We live in a global economy with your next customer only a click away. This doesn’t guarantee success but it does mean you have an opportunity to try.

No matter what 2021 brings it’s a certainty that new businesses will start in response to changing market dynamics. Maybe some will fail but there will be many that will grasp the opportunities that a new year presents and will succeed. In my mind I have no doubt that 2021 will be the year of the entrepreneur. The  real question is will 2021 be your year?

Posted: Friday 15 January 2021

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