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By Michael Sterling
The last ten years have brought a resurgence of entrepreneurs unlike the world has ever seen. Online media and social interaction have made it easier for startup companies to compete with large corporations, and in many cases topple them over.
2014 is showing promise towards becoming a major turning point for how businesses are run. If you’re looking to start your company soon, trust me, the best time is now. Here’s why:
A Rise In The Entrepreneurial Spirit
According to the Kaufman Index of Entrepreneurial Activity (KIEA), the entrepreneurial rate in the U.S. is already well above the dot.com bubble of 15 years ago. Over 20 million non-employer businesses are out there today, and more are starting every day.
Consumers want a change, and the internet has given them a voice to express exactly what they want. Because of this, entrepreneurs are much more connected with the needs of their customers. Eventually the question becomes: if I’m not getting it, why not start it myself? This spirit has become infectious, rendering a business degree nearly useless.
Startups Are Succeeding In Record Numbers
It’s believed that up to 40 startup companies are valued today at $1 billion or more, and according to a NY Times article, a year from now that’s projected to go as high as 100. More entrepreneurs are getting rich from their ideas than ever before. This is fueling the need for entrepreneurs to use each other for their own success, creating business partnership with giant benefits.
The necessity for companies to continuously create new ventures is obvious Today’s consumer is used to variety, and they want constant change. Startups are now building startups and merging with other startups to create, yet, another startup. The need for constant reinvention is clear.
The Cost For Startups Are At An All-Time Low
Business incubators and accelerators, like Y Combinator and TechStars, are incredibly popular among entrepreneurs and are popping up all over the place after proving tremendous success with companies like DropBox and AirBnB. These opportunities have made it easier for investors to wave money in the face of hungry companies.
The smart investor knows that the consumer always wants something new, and with online loyalty being what it is today, it takes little effort get them to cave. After all, they’re just as eager to make money as the entrepreneur they’re helping is.
Funding Is Much More Available
When it comes to venture capital investors, it seems like their standards have gone way down. Last year, they funded about 1500 startups, with Angel investors backing over 50,000 more, according to David Rose, CEO of Gust.
But since venture capitalists typically fund only one out of 400 requests they get, the more startups there are, the less likely you are at getting funding. But one major reason for you not to care is that the cost of starting up nowadays is next to nothing.
Smart phone apps can be built for less than $10K now and the cost of building a website is less than a gym membership, so many entrepreneurs are ridding themselves of the need for investors.
Consumers Prefer Smaller Businesses
According to a recent survey, 94% of consumers say their needs are met far beyond expectations in smaller businesses over large ones. If there’s one public service social media has done for us, it’s showing the true nature of how big businesses are run. Corrupted corporations have become front page news, leading consumers to veer their loyalty elsewhere.
The key reason why startup companies are needed nowadays is because they’re new – new technology, new products, and new management. People want changes, and they’d rather get it from their neighborhood market than a globally run company. When the customers like how they’re treated, loyalty is harder to break. This has been a philosophy which has proven true among many young entrepreneurs.