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Pandemic start-ups

Have you seen an increase since COVID began?

Didn't find your answer?

Afternoon Folks,

Hope everyone enjoyed their long weekend. Our team came across a talk from Quickbooks VP Chris Evans during this year's Quickbook Connect event on the rise of the pandemic start-up. 

According to Evans' research, the number of start-ups had increased by 14% last year and some have shown themselves to be thriving despite the difficult conditions. 

And it seems that social media is a big part of these lockdown businesses' success as, according to another Quickbooks study, 3 in 4 pandemic start-ups rely on them and some spend a whopping 7 hours a day keeping their channels up to date.

With this in mind, What are peoples' experiences with pandemic start-ups - have you noticed an uptick amongst your clients? Also, will you be changing your social media strategy in light of its increasing use amongst potential clients? (As long as it doesn't take you away from the Any Answers community of course!)

Thanks everyone, looking forward to hearing from you.

Replies (8)

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paddle steamer
By DJKL
03rd May 2022 15:58

It is an interesting outcome that a weaker economy can lead to more new business entities starting up ,but it does partly make sense, those possibly losing jobs leaping into self employment.

The main catch with new business type clients is the time that needs input at the front end and the percentage survival rate into years two and three.

(And of course a reluctance to appoint an accountant (no money) and an increase in basic questions within Any Answers)

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ghm
By TaxTeddy
03rd May 2022 16:03

Haven't seen any startups at all. Quite a few new clients but those seem driven by a need for cost savings as they all come from larger firms.

We're not on any social media so no change there for us.

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By DKB-Sheffield
03rd May 2022 16:26

Call me cynical but, I wonder how many 'new' startups were actually existing businesses who now realise it doesn't actually pay to be 'under the radar'?

I had an interesting conversation with an existing client the other week who had been talking to some of his 'mates down the pub'. They'd been complaining about how HMG had done nothing at all for the self employed during the pandemic. My client said he had few complaints (having legitimately claimed significant SEISS 1-3 grants). However, many of the others didn't qualify as they're not 'registered'/ 'in the club'. Others only received small grants based on a low level of earnings. The main complaint, 'HMRC didn't take cash jobs into account!. I clearly asked for names of these 'mates' but, the client was not forthcoming! Only one name was mentionned at all... "Smithy".

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By MCV71
03rd May 2022 17:31

7 hours a day keeping social media up to date? With 7 hours on advertising how do they get any real work done?

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Replying to MCV71:
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By Hugo Fair
03rd May 2022 17:45

"3 in 4 pandemic start-ups rely on them and some spend a whopping 7 hours a day keeping their channels up to date" ... but we're not told what these start-ups do (and I doubt that involves 'real work')!

They may well only 'exist' on social media (my rough understanding of what 'influencers' do) - or at least it may be the only tangible aspect of their business (no premises, no staff, no stock - just taking orders/deposits on the basis of which the purchased goods are then ordered from actual supplier).

And with regard to Will's questions ... these are not the type of 'trades' or people who have a business plan, let alone who look for accounting advice *before* they hit problems!

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Replying to MCV71:
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By DKB-Sheffield
03rd May 2022 17:56

Good question! I realise there are 24 hours in a day but if it takes 7 hours to market a 'normal' 8 hour working day either, they're set for a regular 15 hour day OR they can make £80 (profit) in 1 hour to 'beat' minimum wage!

Admittedly, some may make their living from social media (e.g. SM marketing gurus) but surely not all?

I'm not sure I'm going to take too much notice of 'official figures' resulting from market research carried out by Quickbooks (or Sage, or Xero for that matter). No doubt there'll be a Social Media marketing company buyout by Intuit soon. Or maybe all the 'newbies' happen to manage without an accountant BECAUSE they just take a photo, submit a VAT return and "Take Care of Business" happily without one!?

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Replying to DKB-Sheffield:
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By Hugo Fair
03rd May 2022 19:41

Think we're all in danger of falling for the marketing guff.
Look out for the weasel words like "up to" or "from" or in this case "some".

"some spend a whopping 7 hours a day" doesn't mean all of them or even most of them ... indeed it may mean no more than one of them (and that may be hearsay)!

Which is why supplier PR puffs (which invariably is all that such dubious statistics are actually) shouldn't be taken seriously by journalists, Will.

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Replying to DKB-Sheffield:
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By Hugo Fair
03rd May 2022 19:47

Duplicated (when previous attempt appeared then immediately disappeared before re-appearing again - all in the space of 5 minutes)!

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