By all estimates, hundreds of businesses are closing each day in the United States. If yours was one of these, you may be skittish about launching again in the middle of a global pandemic. But when you are an entrepreneur at heart, you won’t be satisfied to simply sit around and work for someone else. Here we share a few tips on things you should do before you get back into business.
Know your resources.
First things first, evaluate your available resources. This could be anything from existing market research to blogs such as My Startup CEO that provide relevant and up-to-date information on all things business. You also want to take a look at what you have leftover from your former business. Knowing what resources you have available now will keep you from overspending as you gear up to launch or relaunch your business.
Rethink your marketing strategies.
Your next step is to think about how you want to market your business. For most, this starts with social media. Social media marketing remains a powerful and relevant tool to help keep your name in the public’s eye. But as Entrepreneur suggests, it is best to actually get to know how social media works before you start posting ads. You may have had some success casting a wide net in the past, but your budget is likely different now, and you’ll need to target your potential customers with laser focus.
Draft a business plan.
A business plan can help you grow your business faster as it outlines your goals and keeps you accountable for them. It’s also an opportunity to evaluate your risk and rewards. A well-thought-out business plan, which is based on SMART goals, allows you to measure your success based on expected milestones. Fortunately, even if you don’t have experience writing out a business plan, there’s plenty of information online about how to get started quickly.
Acquire funding.
Unless you plan to fund your startup on your own, you’ll need to branch out of your own bank account. There are many ways to fund a startup, including crowdfunding, angel investing, and business accelerators. And depending on what you do, Profit Books notes that you may even be able to win contests for funds to get you up and running.
Define your structure.
All businesses are structured. Many small businesses are, by default, a sole proprietorship. While this gives you complete control over everything, it also leaves your business most at risk of financial losses. Consider restructuring as an LLC. If you are strapped for cash, you can use a formation service to guide you through the process and save on attorney fees. However, you will need to do your research to determine if an LLC structure is advantageous for you. Before you can enjoy the flexibility and potential tax savings, you also need to get familiar with the rules in your home state.
Get compliant.
The vast majority of industries require some type of compliance, and all businesses must remain compliant with government financial regulations. If you are an LLC, for example, you may be required to submit an annual financial statement — meaning you will need to have systems and procedures in place to track your incoming and outgoing funds. Further, if your business collects data or has investors, you may be required to follow industry-specific compliance regulations.
Accept all payments.
In a world that seems primed for a cashless society, your business is better off if you can accept a variety of payment types. In addition to cash, you should be able to accept credit cards, PayPal, Venmo, and even paper checks. Not allowing your customers to pay in their preferred method means that you will potentially miss a sale — and for small businesses, every dollar counts.
Don’t make the same mistakes.
The fact that you have closed the business means that you likely made some mistakes along the way. This might have been a failure to structure your business or having effective customer service strategies in place. Or given the pandemic, you simply may not have been in a position to change the way you operate to react to the New World. Evaluate things you might have done wrong with your former company, and avoid making the same mistakes with your new endeavor.
Study the competition.
Market research is one of the most important things you can do as a small business owner. When you are getting ready to launch a new business, it pays to know the competition. Still, it is not enough to simply know who else is in your arena; you need to get to know their strengths and weaknesses as well. Pay close attention and identify gaps in the market that aren’t being filled. When you know the shortcomings of your adversaries, you can put yourself in a position to be a stronger player in your market.
Be realistic and pace yourself.
Finally, be realistic in how you plan to run your business and the profits you expect to make. While we all have big dreams, moving too quickly to reach them is often a mistake. Take your time and measure out attainable goals. Reach them by working hard and evaluating your processes along the way. While you are certainly excited, do not let your enthusiasm leave you with blind spots.
Starting a new business in the middle of a global pandemic is likely not what you envisioned for yourself just 12 months ago. But here we are, and given that many other businesses have closed, now is a great time to make your entrance in an uncrowded market. Take your time and take steps, such as drafting a business plan and re-envisioning your marketing strategies.
To help you start strong from the very beginning, My Startup CEO has all the resources to help you grow a business in the best and worst of times. Visit for growth, marketing, and more startup advice.
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