The New Rules for SME Entrepreneurs
It has been almost 2 years since the Covid-19 era began, and we must admit that times are hard! We are living the new ‘normal’ life and people are fighting to keep their businesses alive. People can understandably say that it has been a terrible time to start a business. However, this statement is false since for some entrepreneurs the steps for starting a business are still the same – the only thing that has changed are the rules.
So, since the Covid-19 has rewritten some of the rules for starting a business, let’s sum up what has changed until now and what is the path to success that new entrepreneurs need to take during and after 2021. Let’s start:
1. You need a business plan
What is the same: When talking about a business plan, even in this time of changes, you definitely need one. You have to write a business plan when starting your business. These are the things you should include in your business plan: how much money your product or service will cost, how much money you will need to break even, how you will market your product or service, etc. Among the other things, there is one question that people forget to include in their business plan, and that is ‘How much money will you need to live on each month?’
What has changed: Your strategy. You need to have a front and centered online strategy. Do you know how to connect with your customers online and via phone calls or video calls? Is your website interactive? Do you know how social media works and how to place your business over there? These are really important questions for startups today.
Businesses who survive are businesses that include digital-marketing strategies in their business plans. They have an online presence and in that way they connect with their customers and their audience. Even if the business offers a service instead of a product, it is important to have a connection with your customer, keep them informed of what is happening, and update them on new developments because people like to be kept informed.
2. You need to make some calculations
What is the same: Well, it is not unusual to say that new businesses need a pile of cash to start up. They need to think of the expenses they will make and also about what will happen if sales do or don’t go up. However, in these kinds of situations people avoid going to banks. Banks are last on the list of startups since it is hard to get loans because the banks don’t like to waste their time dealing with people who will need time to start making money. So instead, small business entrepreneurs start with their own savings, or borrow from friends and family, or get capital through other sources.
What has changed: Since the times have changed, you will probably need to double your calculations now. You will need more money to get started these days. If your plans include money that would last for half a year, you have to double the amount now because things are unpredictable. We don’t know if there is going to be another lock down or not, we don’t know what new changes will come up, so it is best to plan ahead.Think about how this will affect your clients while making the calculations.
3. You need to fight inertia
What is the same: Well, the thing is that if you actually want to achieve something, let’s say starting a business, you need to start working and start your business! You need to do something that you haven’t done before and you need to plan! Ask yourself some questions like: What have you done so far? What will you do tomorrow? Know where you are heading?
What has changed: If you think that it takes courage to start a business, you are right! It takes a lot more courage and risk tolerance now. You need to adjust to the way things are, and the way things will be. There are businesses that were going pretty well, but have been dropped down to zero revenue as a result of the pandemic. The new task is to do research and to find ways to adapt.
4. You need to track your money
What is the same: It is essential first to open a separate account for your business and to keep it separate from your personal. Finding an invoicing software for your small business is the next step. You need to keep track of all your expenses, even if your business is not open yet, so that you will have your money more organized. So keep track of your money, pay attention to how much you receive and how much you spend.
What has changed: You need to have the right people by your side; times are constantly changing which includes the laws as well. When opening a business you need to work with smart people. Network and make connections! Make sure you know a banker, accountant, insurance pro and lawyer that will be able to assist you with starting your accounts, taxes, lower the risks etc.
Now, since one of your next steps would be finding invoicing software, let us share dillali.com – our financial app that has helped a lot of entrepreneurs gain control of their money. With dillali you can track your income and expenses, issue invoices, receipts, receive monthly reports and track who owes you.
Until next week…