Out of all the many different realities the pandemic has brought to the fore, there is nothing more glaring than the fact that relying on a single source of income is highly unstable and insufficient. This, in addition to the skyrocketing unemployment numbers, is encouraging many to consider launching a business even in the midst of a pandemic. If you are one of those people, here are some of the things you need to know and do when launching a business in a COVID economy:
Create a Detailed Business Plan
Establishing a business is one of those ventures that cannot be, in any way, taken lightly. After all, you are looking at a project that will require jaw-dropping amounts of hard work, dedication, effort, time and money. If you don’t want any of these things to go to waste, then you have to plan. And by plan, we mean as extensively and as detailed as you could possibly be. When crafting a business plan, there are certain things you have to take into account.
These include determining your purpose, building your vision, clarifying your business model, identifying your target market through tedious but highly important market research and testing out your business idea. We are currently living in a world where nothing is for certain and the economy is highly volatile. That being said, it would also be a good idea to include an exit strategy in your detailed business plan. This way you can plan ahead about how you will overcome potential difficulties and determine the things you might need to sustain your business.
You have to get used to putting things into perspective. Amid such times, if you’re looking forward to starting your own Crossfit gym, for instance, you need to be aware of your responsibilities. These business types tend to be under the public sight since you’re required to take care of your customers. That being said, make sure you don’t skimp on efforts no matter your niche and its difficulty.
Choose the Proper Business Structure
Speaking of living through a highly volatile economy, another way you can safeguard yourself from the unexpected things that might happen to your business is by choosing the right business structure. Business structures have four main types: sole proprietorship, partnership, limited liability company (LLC) and corporations. As a budding business, the structures that will probably apply to you are the first three. A sole proprietorship is the easiest one to apply for. It typically requires only a few, straightforward steps, a lot less paperwork compared to other business structures, cheaper registration fees and simplified business ownership.
Partnerships are similar to sole proprietorships but with two owners. An additional person on board can prove to be a significant advantage you should consider. These can range from greater expertise, more capital, better business opportunities, a healthier work/life balance and some welcome moral support. If you want to enjoy the best of sole proprietorships and corporations, LLCs are the best option. The biggest benefit to forming an LLC is that you can enjoy the same protection corporations do without giving up as much control as sole proprietorship. Through an LLC, you can also afford to have a flexible management structure, customizable ownership options and avoid double taxation.
Figure Out a Marketing Strategy
The world we live in is constantly changing, and for your business to be able keep up you have to have a well-crafted marketing strategy. There are many things that can define the quality of a solid marketing strategy. However, at the most basic level, it should consider multiple marketing channels, an understanding of your buyer’s journey, knowledge of your competition and a sustainable approach to building credibility. In this day and age, it also pays to have a marketing strategy that recognizes relevant trends such as the emergence of social media influencers, the growing popularity of video content and consumer behavior habits.
When done right, your marketing strategy can deliver a lot of gains for your business. These can include streamlined and informed product development and effective distribution. A reliable marketing strategy can also help determine optimal prices, assist with marketing communications and offer significant improvements to organization and communication within your business. The last perk is extremely important these days, especially with the pandemic forcing us to build connections and communicate remotely through emails, calls and chatting apps. Marketing strategies come in all shapes and sizes, but if there is one thing you shouldn’t even think about sleeping on, it’s digital marketing. Digital marketing can help you reach a greater audience, provide engaging content that speaks to your target market and enable you to compete with some of the biggest names in the industry.
The post What You Need to Know When Launching a Business in a COVID Economy was first published on Coworkaholic.