Are you one of the many people who have found themself ready to start a business during the pandemic? Perhaps you lost your previous occupation, or have just managed to fit an extra few hours into the day now you are working from home. If you are thinking about making the step, then there are some factors you must consider.
Starting up a business is never easy, but the global pandemic has made it much harder. Between determining the size and structure of your business, as well as comparing and contrasting personal loans and other sources of capital, the process of starting a business is still the same. Below, we discuss the path to success if you are thinking of building a business in the current climate.
Research Your Business Well
During a pandemic, before taking any steps toward starting your business, you need to do research. Your business needs to be something consumers want. You need to assess your target demographic, the market demand, and how any competition is faring in the current climate.
Once you have this, assess your own set of skills and the experience you have. If you need training or refreshers on past skills, now may be a good time to do it, particularly if you are working at home and have more time in your day.
Organize Your Finances
Begin to organize your finances before you start any other planning. This includes personal and business finances. If you can put aside any money towards starting your business, then do so.
Begin by opening a bank account and getting a credit card for your business. Then, source an accountant to work out tax and finance for you.
You can find a number of software packages to help you manage money. Business accounting software is a great help. Using such software, you can do billing, receive instant payments and file VAT digitally, and thus, monitor the cash inflow and outflow status of your business easily. If you will be hiring employees, you can use software such as this pay stub sample to help you keep track of employee wages.
Once you have done the research and organized your finances, you can start to form a business plan. Start with a name, and check it is legally available for use. If you are starting an online business, you may wish to check the domain name is available.
Next, you will want to work out how your business is organized as an entity and taxed. You will want to create a business plan, should you require any meeting with bank managers for loans and finance.
A business plan should include a mission statement, a business description, and a list of products or services. After this, you will need to discuss the current market. Make sure you make specific reference to the pandemic, and how your business will thrive in these testing times.
Finally, include any financial plans and predictions. Write down any others who will work in the company and the cost of employing them.
Consider Your Timing When Starting up a Business
Before you launch your business, consider your timing and situation. While it may be the perfect time for you to start your business, it may not be the right time economically and socially. The situation of the global economy and even the time of year can all impact your startup.
In summary, start small and build up. This way, should more uncertainty hit, you will be less likely to lose the time and money you have already put in.
If you enjoyed our article on starting up a business, then check out the rest of our blog. We have a number of handy articles on business and finance that will get your enterprise off to a flying start, even during these uncertain times.