Although the pandemic hit small businesses hard the past couple of years, statistics show there was a boom in new businesses during the pandemic. Yet, challenges continue to haunt small business owners and entrepreneurs today.
As we settle into a post-pandemic business world, established business owners and new entrepreneurs alike would do well to keep these six things in mind from Back2Basics’ lead brand manager, Tanya Troska, so this trend of successful businesses persists.
- Choose Your Customer Wisely
A business can’t rely solely on a great idea. A new business should solve a problem in the market, so defining your ideal customer is one of the first steps towards running a successful business. Focus on a particular demographic. Whether it is age, occupation, or lifestyle, your ideal customer dictates where your business should be located, what products or services you offer, and how your company operates.
- Market Your Business
Proper marketing and branding is important. Without it, your business can suffer poor customer interaction and low traffic, ultimately decreasing your profits. You can easily market by promoting your business via social media, hosting events, using Google’s tools to optimize searches, or outsourcing if you lack the skills or time to commit to marketing personally. Something as simple as handing out flyers around the neighborhood is a classic way of drawing local attention.
Even if you don’t hire a designer, make sure you spend time creating your brand. You can use an online tool to make a logo and download it. Customize a template with colors, text, and graphics of your choice until you’ve created something you like.
- Fund Your Business
There are several funding options small businesses can use to gain capital. Once you know how much funding you need, you can choose to self-fund, gain investors, or secure loans. Niche businesses can even qualify for certain grants.
Self-funding can involve your own savings, your 401(k), or help from friends and family, but this is generally a high-risk option for many entrepreneurs. For those who have good credit and a robust business plan, bank loans and SBA loans are an option. Lenders find new businesses to be riskier investments, so expect higher rates if you’re a start-up. Angel investors don’t have as stringent requirements as loans would, and they can offer valuable insight into various industries and markets.
- Utilize Accounting Software
When you run a business, accounting is one of the most important aspects to keep track of. After all, if you don’t know how much money is coming in and going out, it becomes very difficult to maintain a profit margin. This is where industry-specific accounting software comes in. By using accounting software for construction, for example, you can manage your business finances with ease. You can invoice electronically, cost jobs, handle bookkeeping, and gain cash flow insights. This makes it much easier to keep track of your finances and make smart decisions for your business.
- Pick the Right Business Entity
Choosing the right business structure is important. It affects how much paperwork you need to have, how much you pay in taxes, and what degree of legal protections you have. There are pros and cons unique to each type. Limited liability companies, however, have been growing in popularity due to their tax benefits, limited liability, and management flexibility. Every state has its own rules regarding LLCs, so make sure you’re in legal compliance before moving forward with your business, or consider a formation service to help you form your business without the expensive lawyer fees.
- Remain Flexible
All businesses have to constantly innovate to survive, which is especially important as we emerge from the pandemic. Just as the situation is ever-changing, so should your business. Be flexible in your decision-making so that your business can easily adapt, and be prepared to change how your goods and services are available to customers. For example, your business could benefit from operating both in-person and online.
Your business can start off and remain strong even amid the pandemic. If you have focused intentions, marketability, funding, the right accounting software, and a flexible attitude, you should achieve entrepreneurial success.
Since 2015, Back2Basics has leveled the brand development and brand management playing field for small businesses. For more information, please reach out to schedule a complimentary Discovery Call with the team today!
Today, Julie finds fulfillment in helping busy professionals find the clarity they need so they, too, can live inspired lives that fill more than just their bank accounts.
