Economic depressions have a way of triggering an uptick in startup companies. Surprisingly, the transition creates new opportunities.
Typically, recessions leave people unemployed; the combination of financial pressure and newfound idleness creates inspiration and innovation.
Some people might have a stroke of luck in the form of early retirement or severance packages. These would help them pursue and finance their dreams.
Whether all companies birthed in the depths of economic crises make it to the top is a story for another day. But, as in the California Gold Rush of 1848, many riches are acquired by companies that cater to the startups’ needs.
This post shows how startups are a common missed audience and opportunity by identifying the prominent needs of startups in the Covid era, as well as companies that have recorded impressive wins by catering to those needs in recent times.
1. Registration
For a startup to take form, it needs to be registered. Startups typically operate as companies, so they need to be incorporated. Swyft Filings has served startups, and themselves, well in the global pandemic economic crisis.
Swyft Filings helps people form legal business entities. They’ve identified a niche by attending to customer’s orders instantly, so the process of forming a new company starts quickly. This saves the customers’ time and allows them to focus on their new pursuits.
Additionally, they ensure that startups are compliant. They facilitate obtaining the Employer Identification Number/Federal Tax ID, without which the new businesses can neither open bank accounts, receive funds, nor pay employees. Furthermore, they help startups navigate the various red tapes by figuring out the necessary licenses and permits need to commence operation in their respective fields. Then, they help the businesses apply for those licenses and permits at the various levels of government.
Many startups have used Swyft Filings during the economic decline. An annual comparison reveals that its gross profit in the first quarter of 2021 saw a 94% increase from the first quarter of 2020. Swyft Filings added 20 employees to its workforce since last December, going from 64 to 84 to meet demand. Another comparison shows the company recorded up to a 26% increase in gross profit from the fourth quarter of 2020 to the first quarter of 2021.
2. Electronic signatures and agreement
Signatures are essential in business. Without them, contracts and virtually every other document would be null. As the pandemic kicked in, the state of affairs emphasized the need for electronic signatures and contract automation. Startups in the COVID era had to jump on the train quickly.
A company that fired on all cylinders to ensure these new companies got what they wanted was DocuSign. This company is leading the digital signature space, and it has been an immense help to companies that emerged in the pandemic. It made it easy for parties to agree and append their signatures to documents without hassle and chaos. As a result, a recent report reveals that its total revenue in the first quarter of 2021 was 58% more than the first quarter of 2020.
3. Teleconferencing
While the pandemic proved that remote work isn’t as bad as many companies thought, it also showed that meetings can be conducted remotely. Meetings are important for every company to conduct appropriate discussions and deliberation.
A company that has become a household name in the teleconferencing space is Zoom Video Communications, popularly known as Zoom. With much of the world holed up in their homes, Zoom has made it easier for teams in new and existing companies alike. Zoom has also been catapulted into global recognition and has seen immense profits. Up from just $22 million in fiscal 2020, Zoom closed fiscal 2021 with a net profit of $671 million.
This is proof that startups are on the rise, and by catering to the needs of these startups, your company can experience tremendous growth as well.
Truly, startups in economic depressions are treasure troves, but they are overlooked and missed by companies that think little of them.
What products and services does your company sell? Compliance? Tech support? Branding? Whichever it is, just make the most of the opportunity by marketing to and attracting these startup companies. You’ll reap the benefits.
In the event of a recession, look out for new companies that need your brand’s services. During a gold rush, sell shovels. Perhaps those gold shovels that new and growing companies often use for their groundbreaking ceremonies.
