BY DEREK GOODMAN
The COVID-19 pandemic led to a worldwide economic downturn. If you were thinking of starting a business, you may have put off your plans thinking it wasn't the right time. In fact, there are some benefits to establishing your entrepreneurial endeavor now. For example, as the Brooking Institute reveals, interest rates are near-zero. This means you can likely get a low-interest business loan. Take advantage of this unique climate.
A professional marketing agency like My Rich Brand (MRB) can help you establish a thriving brand to support your success. Read on for a step-by-step guide to building a business during a pandemic.
1. Create a Comprehensive Business Plan
A business plan is a roadmap for entrepreneurial success. This comprehensive document includes product and service descriptions, marketing plans, financial projections, and an operational overview for your business. You may also use your business plan to request funding. External investors and lenders will request these kinds of details before they agree to put money in your company. HubSpot offers free templates you can use to guide your business plan writing and ensure you haven't missed any details.
2. Figure Out Your Business' Funding Needs
Before you approach external parties for money, figure out how much you'll need. Elements to take into account include commercial rent, employee salaries, and marketing and advertising. Fizzle offers a list of questions to consider that can help you prepare to make your case to investors and lenders. For example, what will the money you get permit you to do that you wouldn't be able to do otherwise? Further, are you starting a business with the intention of growing and selling it? Third parties will want answers to these queries if you expect them to provide funding.
3. Establish Your Business as a Formal Entity
Establishing your business as a formal legal entity offers diverse benefits. If you form a limited liability company, you will get tax advantages while enjoying more streamlined tax and reporting requirements than you would with a corporation. An LLC also protects your personal assets in case your business gets into legal trouble. Check your state's guidelines before forming an LLC. Regulations vary depending on location. A business formation service like ZenBusiness can help you avoid pricey lawyer's fees and simplify the process of filing your certificate of formation.
4. Leverage the Benefits of Starting a Business in the Post-Pandemic Climate
Low-interest rates are just one advantage business owners can leverage in the post-pandemic climate. The U.S. Chamber of Commerce highlights additional advantages, such as the large talent pool you can tap into. Many Americans lost their jobs due to business shutdowns and are still out of work or seeking new career paths. CNN reports that America is down about 10 million jobs compared to pre-pandemic levels. You shouldn't have trouble finding skilled, eager workers to support your business.
5. Invest Your Startup Capital Wisely
Once you get the startup capital you need, make sure to invest it wisely. Think realistically about where you can cut costs versus what costs you absolutely can't avoid. For example, you may not need to spend the money on commercial rent if you don't require a dedicated business space. There are alternatives to traditional offices, such as home offices and coworking spaces. Conversely, one area you can't skimp on is marketing and advertising. How are potential customers supposed to hear about your business otherwise?
As the University of Minnesota explains, owning your own business has many advantages. You will enjoy greater independence, creative freedom, and personal satisfaction being your own boss. Don't let COVID-19 derail your dreams. Follow the above tips to get started.
My Rich Brand can support your business success with expert branding that makes you stand out from the crowd. You can learn more about MRB’s varied offerings, from content marketing to social media, on their website. Schedule your free consultation to get started.
ABOUT THE AUTHOR
Derek Goodman is a successful entrepreneur who left a cushy job that supported his family to make his own future by starting and growing his own business. Through his website, Inbizability.com, he helps would-be entrepreneurs who are nervous about pulling the entrepreneurial trigger by offering tips, tricks, and resources so that they too realize their business ability and potential now, not later.
