Starting an Online Business After Losing Your Job

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Are you considering starting your online business? The good news is you’re in great hands.

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With the initial layoffs that unfurled during COVID-19, many moms began to see how vulnerable they became while depending on their employer. In the aftermath, they saw how attractive being a business owner is in this day and age.

Yet, flexibility and freedom are only two of the benefits you get from becoming an entrepreneur. The U.S. economy is in a state that supports small-business owners today — which could become a considerable advantage for your family.

Here’s why you might want to consider starting your online businesses soon.

Why Now Is the Best Time to Start Your Own Business

Small businesses are the center of the U.S. economy. They’re a part of what helps boost the growth of this nation and your community.

Small-business owners are hard workers and will do everything it takes to keep their business running successfully. Even amid an economic downturn, new opportunities seem to arise during challenging times.

One example is during the 2008 recession. Groupon founder Andrew Mason started the website to advertise promotions on products and services offered to consumers. He found it the perfect solution to connect businesses with more customers.

Small-business owners always find ways to flourish — no matter how bad the economy becomes.

Here are other reasons to start an online business today.

1. Increased Access to Consumers

Consumers are shopping online more often than ever before. In fact, e-commerce has increased by 43% since the pandemic started in 2020. This factor shows how consumer behavior has changed in recent yearspeople prefer ordering online over going out and potentially exposing themselves to COVID-19.

Additionally, more people are working from home these days. They’re making work more efficient by purchasing and using online tools.

With these consumer behavior trends in mind, you could be focusing on consumer problems and developing a thriving business this year.

2. More Access to Funding

With many uncertainties about the future, investors decided to pause their investments at the start of the pandemic. But time has passed since then, which means they’re ready to gain returns on their investment again.

And since many entrepreneurs have hesitated to start a business — or had to shut down for good — fewer competitors are in place. Therefore, you possess a better chance of gaining venture capital from angel investors, especially if you have a strong strategy.

3. Talented Workers Are Out There

The pandemic is responsible for many workers losing their jobs, whether temporarily or permanently. For whatever reason they lost their jobs, many individuals are still out of work or had to take a significant pay cut from their employer. Once you start a business and are ready to hire a team, you’ll have no problem finding a talented employee.

A large pool of experienced workers is out there searching for new opportunities. As a result, you may find that one person to help you build and grow your business. As you go through the hiring process, it’s essential to consider all aspects, including the cost of an ID card for your employees. Taking the time to check how much it costs to hire workers can help you budget effectively.

4. Online Businesses Are Inexpensive To Start

Starting an online business requires little upfront investment. Many small digital companies have been wildly successful — starting with only a computer, domain name and web host.

You could expect to contribute up to a $200 investment for the year. Yet over time, you might generate enough in return to build a lifestyle that enables you to do the things you love.

How to Start Your Online Empire After a Layoff

While being laid off is a stressful time, it can also be a blessing in disguise. Maybe you’ve had a business idea for a long time, but you’ve never dared to get started.

Now that you have the time to invest in your new online business, this abrupt job loss may give you more motivation than ever to launch your new startup.

Here are the steps to start an online business after a layoff.

Look for Unemployment

Many people qualify for unemployment when they lose their job. This portion of your salary can help you stay on top of your expenses while starting your business.

Many laid-off individuals will use their unemployment benefits to live while starting a new business. It’s a sustainable way to live before their new business starts to generate income.

However, your state may disqualify you from collecting unemployment compensation if you start a full-time business. Therefore, checking with your state to see how you may qualify for benefits when starting an online business is vital.

If you qualify for unemployment compensation, ensure you can cover the costs while you start running your business.

Focus On What You’d Like to Offer

While consumer spending has increased online, this doesn’t mean they’re throwing their money around at everything they want. People are spending their money carefully due to the current recession.

However, it’s best not to let this discourage you from offering a product or service online. All you need is a solution that solves a problem and makes a difference in consumers’ lives.

Consider what you already love to do or what skills you adopted in your previous job. For example, your job could’ve been in marketing. Perhaps you could start your online business as a marketing consultant.

Maybe you’ve decided to change your career and start an online business selling products. Since more people are staying home and selling online, you could focus on the developments most people want to purchase.

One thing to note is that a business is much easier to start online when it comes from something you’re passionate about already. Then, you can capitalize on your success by carving out a niche for yourself.

1. Have Clear Goals in Mind

Clarifying the outcomes you want to achieve from your business is crucial. Therefore, you must be clear about the goals you need to establish to run an online business successfully.

Your desire to become a digital nomad may be a bit of a confusing goal. It helps to start with something concrete. That way, you can guide yourself along the way even if you need to adapt to reach that target.

Instead, you could start with a financial goal. How much would you need to make this year to support yourself and your family?

A goal like this gives you a great foundation to start with — but ensure it’s realistic enough to achieve.

2. Write Your Business Plan

Before you start investing all your resources into your new business, writing a business plan is a good idea.

Business plans exist for a reason. They’re there to help you clarify your new business idea. In addition, it enables you to identify what audience you want to target and how you’ll find your new customers.

Keep the competition in mind as well. Ideally, you should list other companies in your industry doing the type of business you want to create.

Researching your audience and competition is a great way to give insight into how you should structure your online business and marketing — which can greatly impact your success.

3. Start Networking

Business networking involves establishing connections with others who may be potential customers. Or, they could be someone who knows other people to refer business to you.

Many entrepreneurs avoid networking because they associate it with asking for favors. Yet, successful networkers know it’s not all about them. It’s about creating a trusting relationship and helping others with their needs.

Networking might not seem like much. However, it’s a powerful way to acquire customers since your connections will likely establish a form of word-of-mouth marketing for your business.

The quickest way to start networking is to join networking groups on Facebook. You can build business connections off the clock and enjoy meeting new people from any industry.

In addition, online networking events allow you to meet with other small-business owners. Or, you could attend a local business event to connect with other small businesses in your community.

4. Know Your Worth

Throughout your journey, you may have doubts about yourself and your business. In turn, you might decide to lower your pricing to get that first client. You might also offer custom prices based on what you think your clients can afford.

Many entrepreneurs fall into this trap because they’ve lost their self-confidence. Your situation makes it even more difficult because people sometimes lose the courage to get back up after a job loss.

Unfortunately, lowering your prices won’t provide you with a payable wage yourself. That’s why it’s critical to know your worth. Establish a price you’re comfortable with and believe you’re worth it.

When you become more confident, your clients and customers will see your true value.

Start Living Your Dream Life

While losing a job can be challenging, this could be your wake-up call to start your own business. If you’re serious about becoming an entrepreneur, your job loss could be the best thing to happen. You’ll finally have the freedom to live life on your terms.

Start following these steps to get started today so you can achieve your dream of running your own business.