Ever since the government urged businesses to close down because of COVID-19, the unemployment rate has gone up. But did you know now is the perfect time to start a business? People need supplies and retailers are feeling overwhelmed. If you can meet the needs of those customers, they’ll become loyal to you even after the pandemic ends.
Use the following strategies to get your startup and running:
- Find Capital
The first thing you need to start your business is financing. Create a sound business plan and take it to potential investors. Some banks may still give you loans if they think your business idea is good. Do your research so that you know everything about the market and how your product will satisfy your customers. Consider the competition and make accurate financial projections. Make your business plan as detailed and as clear as possible so that investors can trust you with their money.
- Take Advantage of Government Incentives
The Federal government created a stimulus package to help small businesses that are struggling during these tough times. Find out what incentives the government has put in place to help startups. Such services can help you save money when getting your business off the ground.
- Get Insurance
Since you’re not sure when the difficult times will end, you need to shield your business from risk. Having business insurance for your startup is as important as malpractice liability insurance to a practicing physician. Protect your workers with worker’s compensation and your business from risks such as fires and theft.
Marketing helps your business reach the intended target. However, the marketing mistake that startups make is advertising to a general audience. If you want your efforts to be successful, you have to be very specific. Narrow down your target market and make it as small as possible. You’re more likely to make sales if you personalize the message for a small target market.
- Start Small
Instead of going big from the get-go, start small and build your way up. Even if you understand the market, customers are unpredictable. You may not reach your sales target during the first three months due to low traffic. To shield your business from huge expenses, you can start by operating from your garage or home office. Then, when the orders become too much to handle in such a small space, you can move to a bigger office.
- Leverage on Technology
Thanks to technology, information is everywhere. Take advantage of the resources around you to gain a competitive edge. Install software that will help you manage the business accounts and orders. Use technology to make your business more efficient – machines are better at calculations. Use online analytics to check on the effectiveness of your website. Take advantage of digital marketing platforms to reach more people.
- Have a Backup Plan
Create a backup plan of what you’ll do if you don’t meet your sales target during the first year. Make sure that you have saved enough money to keep your business running for at least half a year. Keep an eye on cash flows and consider negotiating for the best deals with suppliers. Since things are bad, try to make them understand that you may need more time to repay debts. That way, you’ll have more money to deal with more urgent business. Although it’s risky for you to start a business during these difficult times, it’s not impossible. Right now, people need essential supplies. Use the above tips to take advantage of opportunities in the market.
During these uncertain times, there is a lot to consider and you can feel overwhelmed. Please see this article on BetterHelp for further information on ways to combat any anxiety during the pandemic.