Starting a business during a pandemic might seem like the least successful venture to undertake. First, raising capital could be a problem. Second, finding the right customer base when everyone is trying to save the little they have could pose a problem. There is also the issue of whether you will live long enough to survive the pandemic.
But these issues should not stand in the way of your success. On the contrary, with careful planning and dedication, it could be the best decision that you make.
You might be trying to substitute your slashed income, add a stream of income now that you have more free time working from home, or become self-employed after a job loss. Whatever the reason is, starting a business during an economic crisis works for some entrepreneurs.
If you want to start a business during a pandemic, here are some tips to take into consideration:
What Makes You Happy?
Maybe this is the time to do what you love. Many people have grown their hobbies and passions into successful businesses over the years. If you are going to put in extra time and, possibly, your small savings, you might as well do it on something close to your heart.
If you are not willing to pour your heart, soul, and time into a project, the journey will be challenging for you.
However, be prepared for the rocky ride. Once everything that was a recreational activity turns into a money-making machine, it can get tedious and draining. You should be prepared to make the sacrifices that come with monetizing your hobbies.
Dedicate all the time you have to do research on everything pertaining to the business before you even start it. Consider issues like:
- Your market base
- Think of legal requirements, like business registration, insurance, and acquiring the necessary licenses to operate the business. Also, research how much you will need to pay for all these
- The best marketing strategy
- How much capital you need
- Who are your suppliers, if you need to buy inventory
- What are the selling strategies? Will you be selling your products or services online, have a physical address, or both?
- What are the payment methods?
- Last but not least, how will your business adhere to the necessary COVID-19 safety measures?
Do not limit yourself to the above questions only. Any information that you think can hinder your progress or help you run a successful business is worth digging a little deeper into. If possible, talk to loved ones and anyone in your circles who has run a business.
Do Not Think Too Much About It
It is best to keep things simple, as simple as possible. Remember that we are still in a pandemic, so providing the best from the bare minimum will get the business started.
Do not rush to spend all your capital and time on flashy items that will do nothing much in bringing sales and some money. The first goal is to make and keep your customers happy by delivering the best service or product. Once the business has picked and has a strong and stable foundation, you can focus on making it a little flashy.
Ensure Your Finances Are Okay
For starters, if you are thinking of accessing credit from financing institutions, your finances must be for the sake of your credit score. Also, ensure you do not have any significant debts that might affect your credit score or financial status if the business fails or takes longer to pick up.
Even if you are not accessing any credit, you need to have some money saved to cater to any emergency expenses. Sales might not start coming in right away, and if they do, the money might not be enough to meet all the costs.
Most importantly, stay on top of all your business finances. Most small businesses fall in the first three to five years of starting. Mostly, it is due to a lack of proper management of the finances.
You can do manual accounting or use a spreadsheet. However, there are free accounting software systems you can get. These are best since some have basic features like invoicing, tracking of expenses, and allow you to generate financial reports as long as data entry is done.
If you want to start a business during this pandemic, go for it. But it is best to take all the necessary time to do your research and organize your finances to ensure you are aware of what you are getting yourself into. And, while there are several industries and business ideas to start during and after the pandemic, it’s best to start a business doing what you love.