The coronavirus has now dubbed the ‘great unwinding’ of our economy. The financial crisis this pandemic has caused is taking its toll on startups across the world.
Startup businesses have always been risky; they either succeed or fail within the first years of infancy. Amid the COVID-19 outbreak, times have changed so dramatically many thriving startups are now struggling to survive and vice versa. All because of a dramatic change in the general public’s lifestyle.
Below is a list of the startup winners and losers during this pandemic. If you’re thinking of spending this time at home to launch your new startups, then think wisely and about what people need right now. Try to look for new business opportunities.
It has become evident that the best new startups over recent months are the ones in the service and entertainment industry. People who are stuck inside are craving a boredom release and general solutions to uphold their lifestyles indoors.
Video game developers, board game sellers, and online casino platforms are all thriving. With many countries on lockdown, people have more time on their hands and are eager to fill it with gaming entertainment.
In the world of video games, sales across 50 markets have increased by 52.9% over week 12 of the pandemic. While digital downloading in France alone spiked 180% during the lockdown period. Online casino memberships are through the roof as casino halls, major sporting events, and race tracks closed.
Jacek Michałski from Kasynos.Online states that online casinos can be a serious source of income, but above all, a great form of entertainment. Killing two birds with one stone for those out of work and bored at home.
Online stores and delivery services are booming right now. Their no contact method of working may have put them in a bad light with customers in pre-pandemic days. Now their drop off and go approach is what people need and want.
People are being told to stay indoors, and the age of digital shopping is allowing more and more people to obey those rules and stay safe.
Subscription services are taking off right now, from meal prep delivery services to pet toy bundles. There are so many subscription-based new business opportunities out there for people to turn a profit from home.
Many people are making a difference in other’s lives by using their skills of cooking to sell or donate meals to the vulnerable. Entrepreneurial ideas like this can soon turn into a strong startup venture
Many startups that are struggling are having to fold or cut staff to try and keep their heads above water. Most startups rely on investors to operate at the beginning. However, capital from seed-stage funding has plummeted by around 22%.
Bed and Breakfasts
The travel and tourism sector has been hit the hardest with borders closed and people told to stay in place. Even successful accommodation services like Airbnb have had to suspend their operation. They have been forced to freeze around $800 million worth of their marketing.
Bed and Breakfasts, hotels, and hostels stand abandoned across the world, only playing host to those people stranded in different countries.
All forms of transport services have come to a grinding halt. Leaving taxi startups with hardly anyone left to serve. Transport apps are also pretty much useless at this time. Online platforms for air travel are only receiving traffic from hopeful browsers bookings.
Restaurants and Coffee Shops
Another sector that’s taking a hard hit is the food industry. Unless the establishment offers a delivery service, the majority have closed their doors indefinitely. Many of the staff that works at these establishments are now on furlough. Any revenue a startup’s business has accumulated is now being eaten into.
The coronavirus pandemic hit the world like a freight train. It has changed every aspect of the way we live for the foreseeable future. Businesses will go under, others will prosper, and some may find an opportunity to launch new business ideas. The ‘great unwinding’ will take the globe through an economic crisis, shaping the economy far from what is familiar.
New opportunities await if you’re business-minded. If you’re planning to begin a startup company, then be wise to people’s needs and wants during a pandemic. Entertainment, online services, and delivery are the way forward in this social distancing world.