Why Starting a Business in 2021 is a Smart Investment

If you have been thinking about starting a business – whether it has been on your mind for a while or you have a brand new idea – 2021 could be the best year to jump in headfirst. The current economic climate presents some exciting opportunities for new ventures – and those willing to take a risk now could reap substantial rewards sooner than later.  

The Economic Boom Following the Bust

After last year’s economic recession, things are signs pointing towards a significant recovery in 2021 and 2022. We are already seeing some parts of the economy recovering, which often trickles into other parts of the economy. For example, the return of sports and fans to games means the sportsbooks at vegasbetting.com are gearing up for a busy Spring and Summer. Or restaurants opening and increasing capacity implies an increase in jobs and increase in demand for food. 

The recession that hit the global economy was much different from the one that followed the housing market bubble bust in 2008. That recovery took years and sweeping reforms.

The recovery should be more swift, aided by the people who continued to work but had many fewer opportunities to spend money – and the eagerness of most people to return to normal (or at least of semblance of it) by doing the activities they have missed. 

In many ways, it will resemble the Roaring 1920s – which included a surging economy, mass consumerism, and renaissance of arts and culture. The chance to get in on the ground floor – by opening a business now (or soon) will give you an opportunity to reach the first group returning to normal and grow your business to meet surging demands as more people are willing and financially able to enjoy their lives.  

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Give Yourself Some Flexibility 

Opening and running your own business could give you some extra flexibility in the upcoming years – especially if you want to partake in “what some dub as the roaring 2020s.” Some people have grown to love the work from home life – which can give you extra time in your day to accomplish more things. 

Other people may have found that last year they can maximize their productivity by following a different structure than the Monday to Friday 9 to 5. Other people may simply want a better work-life balance or are more willing to sacrifice the life part if the work is something they genuinely admire.  

The Low Cost of Borrowing

If you need a loan to start your business – and your credit score is high enough – this is the best time to get a loan. Interest rates remain at or near historical lows (depending on the type of loan), making it cheap to borrow money. It is also expected that interest rates will remain low until at least 2023 – even if inflation is looming. 

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Available Real Estate Gives Buyers and Lessees an Advantage

Depending on what type of business you are starting, you may want (a physical location for an online store) or need (restaurant) a physical location. It is sad to say it – but thousands of businesses shuttered their operations over the last year, leaving a surplus in real estate available. 

The higher than normal number of retail options available gives buyers and lessees a rare advantage in the market – making it one of the best times to look for a property. 

New Business Grants To help the economy recover, many countries, including the United States and Canada, offer new business grants as part of their stimulus relief programs. If you put in the effort and design a plan that meets the criteria of the grant (which depends on the type and size of business you want to start), you could receive some financial help to launch your dream business.

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.