At the height of the pandemic, many people lost their jobs and were forced to embrace entrepreneurship. There was a marked increase in business registrations. On the other hand, established businesses were affected significantly by the pandemic. While some have been forced to shut down permanently, others have experienced growth.
Amid this erratic economic climate, launching a business may seem foolish. It can seem like more of a gamble than an investment. Even as we emerge from the pandemic, safety concerns and the economic downturn have transformed the business environment from what it was pre-pandemic. As most businesses continue to weather the storm, agile entrepreneurs are taking advantage of the situation to innovate and establish successful businesses that suit the post-pandemic economic environment.
If you do not want to wait around for another job which you might also lose, you should consider taking the plunge into entrepreneurship. This article (presented by The Paper of Montgomery County) highlights effective tips for aspiring entrepreneurs.
Tips for Building a Successful Business
- Adapt to changing trends
In a world where business trends change every two years unlike the past when they took 7 to 10 years, businesses that can change fast survive. You can only adapt fast to changing trends if you are light and lean. Focus on soft assets like robust systems and brands instead of heavy assets.
- Focus on digital
Advancements in technology and the pandemic restrictions made consumers move online for their shopping needs. This shift from in-store service to e-commerce has been happening but the pandemic accelerated levels. It is safe to assume that this trend is here to stay. For new entrepreneurs, implementing digital technology into their new businesses is easier since there is no transition from old habits.
- Pick an industry you are an expert in
Before you launch a business, you should have an understanding of the core operations, competencies, and skills necessary in the industry of your choice. Choose an industry in which you are already an expert or willing to become one.
- Seize new opportunities
While the pandemic has led to the closure of many businesses and the collapse of several industries, it has spawned new ones. These new industry opportunities require plenty of support structure including digital payments, remote working, and online entertainment. These are opportunities waiting to be seized. New entrepreneurs can leverage these changes for increased chances of success.
Profitable Business Ideas to Consider
If you are considering entrepreneurship, there are plenty of profitable business ideas. Here are several entrepreneurial opportunities that aspiring entrepreneurs can take advantage of in a post-pandemic world.
The rise of e-commerce has been happening for several years but during the pandemic, it grew in leaps and bounds. It cannot be overlooked as a good business idea. Starting an online business is cheaper than launching a business in a physical location.
- Transcription and translation
There is a constant demand for transcription and translation services from various industries. This makes it an ideal business to get into for an entrepreneur with a good ear or knowledge of a foreign language.
- Online fitness and wellness
As people stayed at home, the popularity of online fitness videos rose to unprecedented levels. While the return to normalcy post-pandemic means many people will go back to their gyms, online fitness will continue to be a lucrative business opportunity.
- Delivery service
Home delivery was a major hit during the pandemic as governments gave stay-at-home directives. People could order just about anything from the comfort of their homes and have it delivered. Re-opening of physical stores will have many people return to making in-person purchases but most are unlikely to give up home deliveries.
Sourcing Funding for Your Startup
Small businesses typically have a hard time gaining access to funds. The Covid-19 pandemic made the situation even worse. As we come out of the woods, several financing options mostly backed by the government are now available to small business startups.
- Online lenders
Business startups typically have a hard time securing business loans from established institutions. Online lenders are able to provide various forms of small business financing to startups. They offer lines of credit, short and medium-term loans, and invoice factoring with less stringent qualification requirements but higher interest rates. Securing a loan from these lenders can take as little as one day.
- SBA loan programs
Small Business Administration loans are geared towards specific industries, businesses, or owners. The government partially guarantees loans from a nonprofit lender or a bank allowing the institution to offer loans to small businesses that may otherwise not have received loans.
- Small banks, community banks, and non-profit lenders
Business startups are unlikely to receive long-term loans from major banks. They are more likely to receive loans from smaller community banks. Post-pandemic entrepreneurs should consider building relationships with non-profit lenders and community banks to benefit from low-cost financing.
- State-specific initiatives
State governments also started rolling out loans and grants to small businesses in the wake of the pandemic. These state-specific initiatives target certain communities, industries or situations depending on need. When launching your business post-pandemic, you should find out if you are in a category that can benefit from such funding.
- Finding investors
If you need to take on investors to help fund your business, consider registering as a corporation. It’s easier to transfer shares of your business when you’re a corporation, and investors tend to favor its predictable structure. Make sure to research corporation formation requirements and regulations in Indiana before moving ahead.
Hiring professional help
When you launch your business, you may be forced to wear several hats but as the venture grows, you will need to hire professional help to make it work. Hiring the right employees is critical to the success of your business. Before you make your hires, you must first apply for an Employee Identification Number (EIN) on the IRS website. An EIN allows you to set up a payroll system once you begin hiring employees.
In addition to allowing you to hire employees, getting an EIN (aka Tax ID Number) has several benefits. It is the identification you use to file annual or quarterly company taxes with the IRS. The IRS also tracks payroll taxes using the EIN. The EIN provides your business credibility, allows you to open a business bank account, speeds up access to credit among other benefits.
As we emerge from the pandemic and economies work towards recovery, the business climate is set to improve. Many businesses may have suffered due to the pandemic but it also created plenty of opportunities that savvy entrepreneurs can take advantage of to create successful businesses
– Alice Robertson started her career as a professional house cleaner in the home organization industry. She decided to open her own home organization business after cleaning and organizing her clients’ homes for years. She has built an impressive client list over the years which helps make spaces in homes and businesses more functional. To share the great cleaning and organizing advice, she recently created Tidy Home.