Most small businesses have had to adapt during the COVID-19 pandemic. For some entrepreneurs, that meant a simple pivot. For example, some businesses went mobile rather than relying on storefronts. Some dog groomers took to the streets in vans or trucks to provide trims for their clients. Many restaurants shifted to a takeout model, and some became food trucks. For fitness centers, the challenges have been a bit different.
2020 has been full of challenges for entrepreneurs across the country. Adaptation has been key. While everyone is facing difficulties due to a recession, there are still ways to shift focus, or even start a new business. Understanding where the gaps are in the market right now is very important. People always have needs, and the key to a successful business is finding ways to meet them.
Investment in an established company is really the best way to drive innovation. Culturally, there’s a stereotype that new startups make the most ground-breaking, creative products. That’s due to some notable success stories, like Apple, Facebook and even Amazon.
The idea of investing in your small business during the pandemic can be intimidating. However, investment can be one of the keys to succeeding during a difficult economic moment. Adding new equipment can be a wonderful way to adapt to a quickly-changing marketplace, especially where social distancing rules and restrictions can change at any time.
Because the federal government wants to encourage this kind of economic activity and the positive effects that it has, they provide incentives in the tax code. One of the most important incentives is outlined in Section 179 of the IRS tax code. Section 179 makes it possible for taxpayers to deduct up to $1 million spent on equipment AND machinery for their businesses.
Being able to see gaps in the market and maintain a positive mindset can be as important to business success as the overall economic picture.
When people talk about 2020, they sound exasperated. They jokingly compare it to disaster movies. Looking at the news media, it’s easy to see why. There’s been a pandemic, a recession, a busy hurricane season and even so-called murder hornets. Any one of those things on their own is enough to create real problems. Together, they can seem insurmountable.
It’s hard to believe that the COVID-19 crisis has been ongoing for over six months. In March, it seemed like this would be a matter of weeks, not six-plus months. Some of the biggest news stories have focused on depressing statistics about unemployment numbers or hard-hit small businesses. However, it’s important to note that every crisis also brings opportunity with it.
As businesses pick up, they’re returning to a changed marketplace. There’s no vaccine for COVID-19 yet, which means no one can truly go back to the old way of doing things. But entrepreneurs are adapting.
Over 80% of small businesses in the US have applied for federal government aid due to the coronavirus.