If you have thought of forming your own business, now might be one of the best times to start thinking about it. In 2020, according to Morning Brew, U.S. business applications spiked. There were over 1.5 million applications filed for Employer Identification Numbers or EINs. Despite the economic hardships and uncertainty, people still thought it a good time to form a new business.
There is evidence that business formation is a good idea.
Why should you apply for a business?
Regardless of the economic situation in the country, business is always a fast-paced industry. When it comes to forming a new company, you have to learn how to stay afloat quickly. People who had high-level positions or jobs that required a high-level degree or education may be out of work. These people are perfect candidates for business partners. Also, the Fed lowered interest rates. These rates are so close to zero that the cost of borrowing money is a lot lower than before.
How can you ensure business success?
There are no guarantees when you open a business. You must be dedicated to your idea because most businesses do not last past the five-year mark. If you can grow your business during a tough economic time, you may have the ability to grow your business as the market heals. Businesses shut down all the time. Without the time, effort and strategy, you cannot create a business built to last.
While business applications are up in the U.S., it does not necessarily mean that new businesses are thriving. Still, when you have a solid idea, it is worth the risk.