Lots of people have ideas for starting a business, but making the move from idea to entrepreneur is a huge step — one that many are reluctant to take. This is especially true for those with stable jobs, given that more than 50% of small businesses fail within the first five years, according to data published by the Bureau of Labor Statistics. Leaving that stability behind is a big risk.
COVID-19 caused a lot of uncertainty for both current and prospective business owners. Lockdowns left those who rely on face-to-face contact unable to trade, and even digital industries felt the impact of the spending slowdown.
With the vaccine program well underway, life is getting back to normal. That means would-be business owners have a chance to take advantage of a golden opportunity to move forward with their business plans. Today, Branding Creatively offers some tips on how you can do just that.
The Pandemic Gave the Market a Shake-Up
The pandemic led to a significant shakeup of bricks-and-mortar businesses in particular. Yelp reported in September 2020 that 60% of closed businesses reported that they were ceasing operations permanently. That’s unfortunate news for those hardworking business owners, but also means there’s cheap second-hand equipment out there. In addition, around $430 billion in commercial and multi-family real estate debt matured over 2021. That could lead to a lot of repossessions and vacant properties up for grabs.
People Are Enjoying Being Back Out in the World
The flip side of this is that after more than a year of being stuck at home and with limited opportunities, consumers can now take advantage of low interest rates and get out there to enjoy the reopening of shops and services. Castle Rock’s malls and eateries are back at 100% capacity and people want to use them.
At the peak of the pandemic, retail workers across the country were looking for new jobs after their previous employer shut down, meaning this is a rare opportunity to hire qualified employees who would normally be off the job market.
Help Is Available for the Practical Issues
For a business to succeed, it needs a robust business plan and a realistic cash flow statement. Poor cash flow is one of the biggest killers of budding businesses. It also needs consistent marketing, which is easier than ever to achieve with email lists and social media, plus free and low-cost tools for graphic design.
Even some of the really tricky tasks, such as forming an LLC to save on paperwork and tax payments, plus reap the benefits of limited liability, can be outsourced. Use a formation service to file for you and you’ll save a fortune on the LLC startup cost, helping those valuable startup funds go a little further. If you’re short on funding to get your idea off the ground, see if there are small business grants available in your area.
You also need to be serious about cybersecurity threats. These days, cyber threats aren’t just a concern for major corporations. In fact, hackers will sometimes target small businesses specifically because they have more lax security. But a setback like that can ruin your business before you even get started, so this is definitely one area you don’t want to neglect.
Last but not least, if you’re planning on working from home, you should set aside a dedicated office space. That could be a room in your house, or you could finish your garage or basement and work from there. Either way, the good news is that certain home improvements can actually raise your home’s appraisal value (in addition to giving you a place where you can focus on your work), so it’s a win-win! Just make sure you keep those receipts.
Starting a Business Takes Planning
Starting a small business takes planning and dedication, but now is a great time to try thanks to low interest rates, high consumer interest, and the availability of staff and premises. Outsource company formation, marketing, and other aspects for the best chance of success.
Branding Creatively keeps small business marketing simple. Contact us today!
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