04/16/2024 | News release | Distributed by Public on 04/15/2024 19:16
Published: April 16, 2024
Starting a business is now considered the best way to build personal wealth.
That could explain why Americans are leaping into entrepreneurship at record rates - between 2021 and 2023, 5.2m business applications were filed.
Exciting times.
Source: US Census Bureau
The not-so-exciting part? Many of them won't make it past the first year. Even buzz-worthy startups that raised major capital (e.g. Ghost Autonomy) have faltered. Startupinsolvencies are at record high.
But there's a silver lining - with a high volume of business activity, there are opportunities to capitalize on either end of the spectrum.
Last week we told you legal tech is booming. In that category, LLC formation services are doing especially well, using technology to automate the tedious legal processes of starting a business:
On the other hand, many of the same processes apply to winding down a business, and that sector is getting traction, too:
Source: Carta
Don't worry - you won't need to compete with these one-stop shops to capitalize on the rise and ebb of businesses. Here are a few ways to unbundle them and make yourself some nice cash.
New business owners have a million things to do, and need so. much. help.
By solving for them, you can make a reputation for yourself rather quickly.
Custom swag: Helpnew startups need to build brand culture by designing or manufacturing swag that could drive buzz, customer acquisition, or recruitment.
Virtual assistant: With 80% of small businesses in the US being solo ventures, founders are drowning in admin tasks. You can help them source and train virtual assistants affordably, or become a VA yourself.
Digital setup guide: Create a self-guided course to help new businesses build a website, create social media accounts, and look professional online fast.
✅ License expeditor: Help brick-and-mortar businesses apply for and speed up licensing they need to operate, like alcohol license and health permits.
A Sifted survey shows that nearly half of startup founders are mentally exhausted, and ready to call it quits.
Unsurprisingly, their mental health is taking a toll.
Source: Sifted
There's an opportunity to help them get back on their feet. For instance, provide specialized mental health coaching or career counseling to help founders chart a new path post-sunset. Help them refine their resume and reframe their "failure."
Or, create a bootcamp or podcast for "disillusioned founders." Invite battle-tested entrepreneurs to speak, do group diagnostics sessions to help each other spot what went wrong, and organize networking events to rejuvenate attendees for their next steps.
Whether you're starting or sunsetting a company, there are business supplies involved.
In 2023, business supplies was the fastest growing app category, with a 63% YoY boost in unique users.
You can build a secondhand marketplace for companies to trade office supplies, from folders to staples to couches. Companies closing their doors can pass the torch, and recoup some losses, by selling their tools to new founders.
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