Many businesses closed after the pandemic started. Aside from small businesses, large retailers also filed for bankruptcy after consumers stayed home to avoid catching the virus. A lot of employees lost their jobs due to these closures.
While many looked for other jobs, some opted to start businesses after seeing opportunities during the health crisis. July 2020 saw more than 552,000 new business applications, which is nearly 100 percent higher compared to the year before.
Many people will find this surprising, but setting up a new business or startup increases efficiency in the industry. Established companies will work harder to maintain their lead in the market due to the entry of new competitors.
But new startups have to work hard to gain a foothold in the market they are entering. Here are the things that entrepreneurs should consider when setting up a startup in the middle of a pandemic.
Establish the Motivation for the Startup
The first thing that an entrepreneur should do is establish the motivation or reason for the business or startup. The motivation or reason should provide the stimulus in keeping the startup going. The motivation can be the passion for providing services to the community or the aim to fulfill a need in the market. Any of these motivations should be enough to encourage the entrepreneur to start and develop the business.
Aside from the motivation, the entrepreneur should also set short-term and long-term goals for the startup. This gives the entrepreneur something to focus on for a specific period. They should also integrate these goals into the business plan. Additionally, the entrepreneur should choose a business structure to use for the startup. They can opt for a limited liability company or LLC to get liability protection for their assets.
Determine the Tasks to Delegate
At the start, entrepreneurs will handle everything in the startup. But as the business grows, they will have to delegate tasks to other people to allow them to focus on more critical tasks in the business. And even before it grows, they should already know the tasks they should delegate to ensure a smooth transition when the day comes.
More often, the tasks that the entrepreneur should delegate are administrative and accounting tasks, such as taking inventory of business assets and ensuring taxes are paid on time. The entrepreneur can assign these tasks to an assistant.
They can even assign social media management to a capable assistant who can provide witty posts on the social media accounts of the startup. In this situation, the entrepreneur should find someone well-versed in the industry that the startup is a part of to ensure they can provide accurate information to the questions of the startup’s clients.
Look for Funding
Even though some entrepreneurs have the capital to set up a startup, many require funding from public or private financial institutions. The startup can look into getting funding from the US Small Business Administration (SBA).
The government agency can help businesses acquire funding through loans, self-funding, or investors. Securing a loan gives the entrepreneur complete control of the startup so that they can meet their financial obligations. On the other hand, self-funding allows entrepreneurs to tap their family and friends and their resources to finance the startup.
The third option requires the entrepreneur to turn to investors to provide the funding for the startup. In this option, the entrepreneur will give investors ownership share of the startup. They can also take an active role in the startup.
If the entrepreneur opts for the third option, they can hire the best private equity marketing firm to increase the appeal of the startup. These firms also increase the chances of closing these financing deals. These firms perform public relations and promote the startup in the market.
Highlight Social Benefits
Once the startup begins operating, it should focus on the social benefits it can offer in the market. The entrepreneur can highlight what it can do to improve the community it is a part of. It should also demonstrate that it aims not only to sell its products and services but also to help its customers.
Adding a social benefit to patronizing the business offered by the startup increases its appeal in the market. The startup can even donate a portion of its proceeds to a charitable institution that helps the community. This gives customers another reason to continue supporting the startup, especially in the middle of a health crisis.
Setting up a startup is challenging, especially during a pandemic. Due to this, entrepreneurs should prepare everything before they announce their entry into the market.
