3 reasons to open a small business

Continuous regulatory changes, an ever-changing market and macroeconomic uncertainty are today determining factors for the future of a company. At the same time, these almost negative elements can offer numerous opportunities for those who decide to open a business at this historic moment.

3 reasons to open a small business

That said, let's try to shed some light and understand the real reasons for starting a business today.

Opening a small business: why now?

"People take action only when strictly necessary and usually only realise they have to do something in an emergency situation."

Strong words from Jean Monnet, one of the founding fathers of the European Union. Words that should ring in the ears of many potential entrepreneurs. Today, it may not seem like it, but it is the right time to start a business and take advantage of the many opportunities that the market offers.

Starting a business, of course, is not easy; do you know how many companies failed before they consolidated their business?

Today, those who want to open a company must be good at managing the emergency and find those strategic solutions that allow them to turn the crisis into an opportunity and think of a brighter future than the current one.

Crisis… yes, but also a great opportunity

As happens on the stock exchange, where financial speculators enter the market when everyone wants to exit, the same strategy should be used by those who have an idea in their heads and want to turn it into a business. 

When everyone exits, the market is freer and there are fewer competitors to face along the entrepreneurial path. For example, do you know when Airnb was born? At a time when the holiday rental industry and the whole of tourism was about to slide into the abyss.

All the best companies were born during a crisis. Think also of Uber, born at the worst time in the taxi industry. If you think about it, why shouldn't the same thing happen now? 


Why Start a Small Business?

Easy hiring

Today, as never before, it is easier to find talent that you can bring into your company structure – look at this report, for instance. Perhaps because they have lost their jobs, or because they are also content with a lower salary given the period.

The fact is, it is easier and, especially in the start-up phase (but not only), talent is crucial.

Initially, in order to limit labour costs, in addition to using company welfare, they can use alternative methods of remuneration: participation in company equity, i.e. types of remuneration that include cash and other types of bonuses.  

Among other things, in the next Budget Law, a series of contribution reliefs should be included to facilitate hiring.

New forms of financing

Companies can easily obtain crucial financing during the first launch phase. By this we do not mean that the state or whoever for that matter can finance the whole project: you have to put up a large part of the capital (although, in some cases, it is also easy to get everything built for free).

Obtaining financing, compared to before, is easier: the cost of credit capital is very low. Beware, it is not all easy though: the cost is lower but obviously the procedures and timing have not changed. 

Every operation has a well-defined timeframe, not everything happens at once. But at the same time, why not take advantage of this opportunity?

In the next Budget Law, moreover, there will probably be measures to incentivise female entrepreneurship.

Fewer fixed costs (at least initially)

Coming up against fixed costs (utilities, rent and labour) is typical for those who start a business, especially in the initial phase. Today, for example, these costs can be lower than in the past. 

If you think about it, property rental prices tend to be low in times of crisis.

Someone who owns a property, knowing that it is difficult to rent, is more inclined to rent it out at a low price rather than keep it closed.

The same can happen to a supplier of a good. The supplier, rather than losing it, sells it to you at a lower cost and you, if you are good, can build excellent margins from it.

Doing business today is difficult and is not for everyone? Not true!

Many, unfortunately, are afraid to start a business. There are those who hide behind the typical saying that doing business today is difficult and not for everyone and those who complain that taxes are high. Ironically, however, it is precisely the periods of economic instability that represent the best opportunities for opening new companies.

These are the times you must take advantage of if you have an idea in your head and want to turn it into a real business. And why not? Maybe successful!

Choosing the right legal form allows a more effective management of the company and is the basis for the start-up (and more) of a successful business both for more liquidity but also for paying less tax. 

Because, put bluntly, the problem of Italian companies is high taxation. So much so that more than 50 per cent of businesses are afraid of the IRS, and not of the lack of sales.