Are you looking to start a new business? COVID was hard on small companies, but don't think that you have to give up on your dreams of opening your own business this year.
The pandemic has changed a great deal, but with the right strategy and forethought, you can still achieve your goals for your new business. Discover six things entrepreneurs need to consider before starting a business in 2021.
6 Things Entrepreneurs Need to Do Before Starting A Business in 2021
#1: Know Your Market
Doing thorough market research before starting a business is always important, particularly for future business owners in 2021.
A lot has changed in the last year. Conducting market research will tell you more about the industry you're entering so you can do so with a better understanding of what it will take to get your business off the ground.
A market analysis will help you understand:
- Your future customers
- Your customers’ buying habits
- How large your audience is
- How much people typically pay for your product
- Who your competitors are
Evaluating your competitors as part of this process can be particularly insightful. Many businesses closed or changed how they operate in 2020, so conducting competitor research can give you a more up-to-date idea of what your industry is like.
#2: Set Realistic Goals
Once you know more about the market you're interested in, you can set realistic goals for your new business.
You'll want to set clear, well-defined short and long term goals. These goals can then be broken down into objectives that will give you clear, measurable steps towards achieving those goals.
There are two popular approaches you can take to ensure you're setting realistic business goals: using a SWOT analysis and setting SMART goals.
A SWOT analysis can be done before setting your goals, and involves evaluating your company's:
Once you have done this and have a better idea of where you stand, you can use the SMART method to create achievable goals. SMART stands for:
#3: Have A Digital Presence
Online shopping and ordering has become a norm during COVID, making it even more essential for businesses to have a good online presence.
Investing in a solid website with information about your service lines and products. Where appropriate, offering e-commerce or online ordering can help you better cater to the online shoppers of 2021.
This renewed focus on e-commerce and online ordering can even create exciting new opportunities for small businesses who have an online business model.
#4: Hire Great Talent
The pandemic forced many experienced workers out of their jobs. If you are starting a business in 2021, this gives you access to a wide pool of talented individuals who are looking for work.
#5: Know Your Risks
If you're starting a new business (or if you manage an existing one!) understanding your risks is essential. Knowing your risks, and accounting for them, can help you set your company up to better weather future disasters.
When creating a risk management plan, consider:
- What loss control measures you need to take
- What your safety practices are
- What laws and regulations you need to comply with
- Disaster preparedness and recovery
Create control measures to manage these risks, and get your team on board.
#6: Business Insurance
Having the right business insurance coverage is an essential part of a sound risk management strategy. The right insurance coverage can help you protect yourself against specific risks.
When starting a new business, consider what type of coverage you will need. This could include:
- Workers Compensation, which is essential for any businesses that have employees.
- General Liability, which covers risks like injuries and damage to third parties.
- Commercial Auto, if your company owns vehicles.
- Commercial Property, which covers things like business property, inventory, and other assets.
- Cyber Liability Insurance, which protects your business from online threats.
You can save on your insurance by investing in a Business Owner's Policy bundling multiple policies together.
Are you starting a business in 2021? Taking a moment to create a plan for your new company can help you get it off the ground successfully. For the problems you can't plan for, make sure you have the right business insurance. Get a quote with Aegis.