Why You Shouldn't Wait to Start Your Business — Plus Tips for Success
Mindi’s Note: Are you on the fence about starting a business? A number of my blog readers are in a transitionary phase between working in a successful day job and deciding whether or not to pursue an entrepreneurial venture. If this is you, you’ll enjoy this guest post from Derek Goodman below.
If you've been thinking of starting a business, you may have put your plans on pause because of COVID-19. However, as vaccines are being rolled out, hope seems to be on the horizon. This is an ideal time to start a business. Many entrepreneurs are seizing this moment of change to establish their startups. As the Wyss Institute explains, innovation has maintained momentum throughout COVID. Further, the current economic landscape offers unique advantages that can help your new business thrive. So read on to find out why you shouldn't wait to start your business — and for tips on how you can make it succeed.
Why now is a great time to start your business
In an effort to reduce the negative impact of the COVID-19 pandemic, governments and financial institutions slashed interest rates. As the International Monetary Fund explains, interest rates currently remain low and are expected to stay that way in the foreseeable future. As a budding entrepreneur, you can take advantage of this situation by getting a low-interest loan to fund your startup. A business loan can give you the money you need for everything from commercial rent to equipment and technology.
The business closures brought on by COVID-19 can also work to your benefit if you decide to start a business now. While many companies shuttered temporarily, others have closed completely. The American Bankruptcy Institute reveals that about 60% of COVID-19 business closures are expected to become permanent. Many of these businesses are selling off old tools, technologies, and commercial spaces at affordable prices. You can, thus, cut your startup costs significantly.
Take steps to set your business up for success
Before you go ahead with starting your business, it's important to make sure you're mentally prepared. Entrepreneurs face unique challenges that those employed by a company don't deal with. When issues arise, you won't be able to escalate the problem to a higher-up. You're the boss! The Direct Selling Education Fund explains how you can emotionally prepare for business success. They suggest that entrepreneurs keep looking forward and encourage a "fake it 'til you make it" approach to self-confidence.
With the right mindset, you can start taking concrete steps to found your business. Writing a business plan is the first step. This is the guidebook to entrepreneurial success. It includes a description of your business services and products, marketing plan, financial projections, management structure, and more. Expert Hub provides a handy guide on how to write a business plan and also offers free templates you can use. Your business plan can also be used to secure funding.
Next, establish your business as an official legal entity. A limited liability company, LLC, is one option. This business model offers tax advantages and can protect your personal assets in case your company faces legal troubles. To start an LLC, you'll have to file a Certificate of Formation, Articles of Organization, or similar paperwork with your state. Terminology and guidelines vary between states, so do your research regarding local laws. A business formation service like Zenbusiness can simplify the process and will cost less than a lawyer.
Look for ways to maintain and grow your business going forward
Once your business is formally set up, you can officially open your doors. At this point, you'll have to invest in some basic tools and technology to maintain operations. Consider how to best invest your startup capital and aim to save when possible. For example, instead of renting a commercial office space, consider cheaper alternatives. MBO Partners offers a list of options, like using coworking spaces.
Save in these areas and you'll then have more money to put towards other aspects of your business, like marketing. Marketing is essential for attracting customers. There are many means of getting people's attention, from social media marketing to content marketing. If you're not an expert in the field, a professional like Mindi Rosser marketing can help. By outsourcing this kind of task, you will have more time and energy to focus on other areas of your business.
While starting a business may be intimidating, the current post-COVID climate is a great time to take this step. The above guide provides actionable advice on how to make sure your initiative is a success. Don't delay your dream. Get started today.
About the Author: Derek Goodman is an entrepreneur. He’d always wanted to make his own future, and he knew growing his own business was the only way to do that. He created his site Inbizability, to offer you tips, tricks, and resources so that you realize your business ability and potential now, not later.
