This pandemic has forced a lot of people to reevaluate their income and how it is earned. With many people out of jobs, looking to bring in some extra cash, there has been a huge shift to starting new businesses during this holiday season – and what could be better timing! However, with all good intentions, there can always be roadblocks. Be sure to read through this quick guide of the advantages and disadvantages of starting a business during the holidays.
Advantages to Starting a Home Business During the Holidays
There can be many advantages to selling goods and services in a remote holiday business. Some of these include:
Opportunity to Rebound and Create
A holiday business can be a good option for those who lost work due to the pandemic. The uncertainty of the pandemic has opened up many novel needs, including challenges related to celebrating the holidays safely. A small business can be an effective way to introduce creative solutions to issues consumers are currently facing.
Online Shopping Potential
The pandemic spurred a tremendous growth in e-commerce activity this year, which has continued into the holidays.1 In fact, in its annual holiday shopping survey, the National Retail Federation (NRF) found that 44% more consumers shopped online-only during Thanksgiving weekend this year compared with 2019.2
Tax Deductions
You might be able to take advantage of potential tax deductions by starting a business before the year is over. A home business could qualify you for benefits such as the home office tax deduction.
Saving on Startup Costs
You can potentially reduce some of your startup costs by making the most of the holiday sales. Many goods and services are offered at a reduced price during the holidays, which means you can likely find discounts on needed business and home office equipment and supplies.
Disadvantages of Starting a Home Business During the Holidays
Besides the general stress and commotion that often accompanies the holiday season, there are other downsides you may want to consider before deciding to start a new venture. Some things to be aware of are:
Being Haphazard
Starting a business isn’t a lighthearted decision. It requires a lot of research, planning, and dedication, and it can be a big undertaking during what is already a busy time of year.
Brand Awareness Challenges
It takes time to get a new business up and running. Generating awareness of your business and building a customer base doesn’t happen overnight. You may find you’re missing out on some of the holiday rush because potential clients don’t know about your company.
When identifying potential customers, think broader than just holiday shoppers and families. Are there other businesses that could use a service you provide? What about hotels or restaurants?
Consumer Unpredictability
The pandemic has made this holiday season especially unpredictable. Both the number of consumers who shopped over the Thanksgiving holiday weekend and the amount they spent this year dipped slightly from 2019, according to data from the NRF. The organization’s holiday study also found that the number of Thanksgiving Day and Black Friday in-store shoppers dropped by 55% and 37%, respectively, from last year.2
Post-Holiday Slump
Be aware that your sales may drop as consumer buying habits shift after the holidays. While the holiday season can be an ideal time to jumpstart your venture, if you want to maintain your business beyond the holidays, make sure to keep the bigger picture in mind. You’ll want to have year-round demand for the product or service your business offers.
5 Great Home Businesses to Start During the Holidays
Follow along with our next blog to see which business ventures are the best fit for the holiday season!
Thinking of Starting a New Business?
Now is the time! With our society ready to get back in action (safely), new business concepts are quickly emerging with creative flows for serving the public without the high risk of spreading the virus. Put your innovative business concepts into play, and connect with us to get the funding you need to start your newest venture!
Financial restraints have been a complaint for many of the dreamers, limiting themselves to their immediate funds. There is an alternative. If you have the dreams and decent credit, Small Business Loans and No Doc Loans are available to you. Our goal is to provide you with the knowledge you need and the resources available to make your dream a reality. Give us a call – we have the education and the perspective to help you obtain the loans you need for your small business. Visit our website or give us a call to find out what financial backing is available to make your business soar!
Unsecured Finances has over 10 years in the consulting business! We specialized in educating and assisting clients on acquiring Unsecured Business Loans and Start-Up Business Specialty Loans including; Unsecured No Documentation (No-Doc Stated Income) Loans, Unsecured Business Loans, and Unsecured Start-Up Business Loans and Lines of Credit from $10,000 to $500,000 without Assets.
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