According to a new report from the U.S. Census Bureau, there were 1,566,373 new business registrations in Q3 2020, a 77% increase over Q2. By late September, business applications totaled more than 3.2 million for 2020, compared to 2.7 million at the same point in 2019—before the coronavirus pandemic.
Do people who register a new business follow through with the business idea?
There’s a big difference between registering for a business license and actually taking the steps to create and promote a new business. Registering a business can simply indicate that people are thinking about a new business. It doesn’t necessarily mean they’re ready to start one.
One of the first steps in any type of business is to register a domain name to establish your online presence. So how many of those new businesses take that initial step? Donuts Inc. data shows notable increases in developed and redirected new domains February through July 2020. This means that the uptick in businesses who are buying domains weren’t just dreaming—they took concrete action.
Covidpreneurs: A never-seen-before wave of businesses
These new business registrations come amidst a daunting number of business closures. According to Yelp data 163,735 businesses indicated on Yelp that they had closed their doors during the month of August, a 23% increase since mid-July. And 60% of those businesses won’t be reopening.
With so many businesses closing, why are people flocking in droves to start new ones?
First, there’s still demand for goods and services. Business closures leave voids in the market. In addition, the big changes in the way we eat, work, educate, and recreate during the pandemic have brought up new customer needs, such as online fitness options or services that help with remote working.
Second, with 12.6 million unemployed in the U.S., there’s a surge in the number of people looking for new revenue streams. For many, it feels like the right time to start that business they’ve been dreaming about. There’s also a draw toward doing something meaningful during challenging times, especially things that bring people together or help form and strengthen a sense of community.
But where do domain names fit in?
A new wave of businesses calls for a new wave of meaningful, uncompromised and brandable domain names. Faced with the decision of which domain to choose, many new business owners are getting creative with more targeted domain extensions—the letters to the right of the dot in their business domain name.
While legacy domain extensions like .com, .net, and .biz may be the first to come to mind, they’re not necessarily the best option. It’s worth exploring more new, descriptive domain extensions like .life, .studio, .solutions, and more.
According to Verisign, by the end of Q2 2020, new domain extension registrations increased by 8.6 million, or 37.3 percent, year over year. With hundreds of more targeted choices, the new extensions are becoming widely adopted as a good way to build awareness of who you are and what you do. They’re memorable and help convey your brand both on your website and in social media, signs, and brochures. Plus, they help new businesses stand out in search results listings, which is essential for establishing an online presence.
New Top-Level Domain Share of Total TLDs
A forward thinking approach to domain names
If you’re part of this new wave of businesses, be sure to consider a more modern approach to your domain name. It’s worth finding the right option to help you build a stronger, more secure foundation for your online presence.
Search and discover creative new domains at TrueName.Domains, then head over to your favorite registrar to secure your new domain.