Oz Alon is the co-founder and CEO of HoneyBook, the top client experience and financial management platform for independent business owners.
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The past year has fundamentally changed the way we relate to one another, our environment and the way we work. After record layoffs left millions unemployed, many found themselves with time to reflect and reconnect to their passions. Now, faced with the prospect of returning to uninspiring work, an unprecedented number of them are saying, “I quit.”
The U.S. Bureau of Labor Statistics reported that in April, May and June of this year almost 4 million Americans left their jobs each month. And many more could follow suit according to a recent survey where a staggering 95% of respondents said they’re considering changing jobs.
It’s being called the “Great Resignation,” and it’s a resounding rejection of traditional employment. Instead of desk or shift work, people are looking for flexibility, fulfillment and autonomy over their careers. For many in this quitting cohort, improved working conditions will come after declaring their independence and starting their own businesses.
We’re on the cusp of a new wave of entrepreneurship as more Americans seek a deeper connection to the work they do.
The Second Wave Of Entrepreneurship
The anticipated increase in self-employment comes on the heels of an already record-breaking year. In 2020, more new business applications were filed — more than twice the applications were filed in the third quarter of 2020 than during the same period of 2019. Whereas last year’s surge in entrepreneurship was driven by corporate uncertainty after sweeping layoffs, this next wave signals a broader recalculation of what work can and should look like.
People are attracted to self-employment in 2021 because the pandemic set a precedent for independent work. Covid-19 has created a new normal. One where work-life balance is valued and remote work isn’t perceived to undermine productivity.
The future of work doesn’t need to waste people’s time with a commute or require losing important moments with loved ones. So instead of returning to their old jobs, people are betting on themselves and their unique talents.
While many are opting to go solo within their current industry, others are discovering skills outside of their former careers that they didn’t even consider could generate income. Though one in three American adults already has a side hustle, it’s expected as many as 61 million more could follow suit. As an increasing number of people turn toward their passions, the independent business economy will continue to rise as a viable and rewarding alternative to traditional work.
Adapting To A Digital-First Working World
It’s not merely the way we think about work that has changed, but also how we conduct business. The pandemic accelerated the digitization of independent businesses, by as much as three to seven years according to McKinsey, as in-person interactions were forced online overnight. Consumers now expect the same level of service online that they were used to receiving in person, and independent business owners need to keep up in order to survive.
What used to be an in-person meeting is now a video call and what was a combination of checks, files and emails is now a seamless online experience. From the first inquiry to the final invoice, independent business owners are expected to make it easy for clients to flow through the onboarding process without missing out on the personal touches that led them to hire that service provider in the first place.
This digitization has also opened up new opportunities for business owners to attract work outside of their geographic location. To do so they must ensure the experience of selecting their business from afar is as persuasive as it would have been in person. Operating a successful independent business in today’s market means providing a high-quality digital-first client experience that is customized to the business owners’ unique brand. That looks like providing seamless client communication and the ability to select services, sign contracts and pay invoices easily online.
Digitization doesn’t mean customers don’t want personalization and that’s the balance that independents are turning to technology to provide. Digital solutions are more important than ever to help new businesses meet this need and seize their potential.
What’s Next
Today there is both the appetite for entrepreneurship and the digital landscape to facilitate its growth. With the help of intuitive online tools, it’s easier than ever before for a committed individual to take their side project full-time. And with more people considering going solo each passing month, the independent workforce is poised to continue its rapid rise.
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