The Covid-19 pandemic has made one big change to employment: It has taken away steady jobs and given rise to small businesses and the gig economy.
The result is that everyone and their third cousin twice removed are looking to go the entrepreneur way — the scale of the enterprise differs — at a time when the US Bureau of Labor Statistics says about 65 percent of companies fail within the first 10 years, and about 20 percent fail within the first two.
Here are six tips to bear in mind while starting a new business to make sure yours is not amongst the above statistic:
- The plan of action
According to data from the US Bureau of Labor Statistics, businesses fail primarily due to inadequate planning, a lack of understanding of what it takes to establish a business, or a lack of funds throughout critical stages such as marketing, product design expenditures, and personnel decisions.
The company should be based on study and planning, with adequate funds, a strong structure, and a skilled team.
A strategic action plan assists in defining the results of actions prior to their implementation and their repercussions and potential risks.
Developing a strategic plan can take a long time, affecting when to start, but it pays off when everything is in place.
If you don’t get enough support, fundraising can turn into the worst decision you’ve ever made.
Those who offered their support and the initial money will lose faith in the startup if it fails.
Someone could try to steal your idea on any crowdfunding site, so make sure your work is protected by copyright or intellectual property rights.
- Being on the internet
Having a company or working online is no longer a luxury, and having a remote client base boosts earnings dramatically.
In addition, according to Fit Small Business, about 54 percent of consumers prefer to shop online rather than in stores.
As a result, running a business or one with an online presence is essential.
Flexibility may be demanded from many quarters, the most important of which is payment flexibility.
According to Baymard, 69 percent of online shopping carts are dropped due to a complicated checkout process.
Check that the company’s website is up to date, and functional payment methods are offered.
Dealing with various marketing efforts is also part of flexibility.
For example, many consumers still trust official websites rather than a Facebook page or a Twitter handle.
Therefore, using social-media marketing in the early stages of a company’s life may not be effective.
- Planning for IPO
According to a new Deloitte study, planning for an initial public offering should begin 18 and 36 months before the expected IPO date.
Then, if all the documents are in order, it will be simple to launch an IPO when the market conditions are favorable.
An IPO usually helps a company grow exponentially.
- Alternate strategy
Even if all the preceding advice is followed, the company may still fail due to uncontrollable external variables such as economic crises.
It is vital to have a sensible backup plan in case the main goal fails.