Considering all that the things that we've been through in 2020, starting a business might be difficult. But, with the right setup, a committed team, and a bit of luck, you can both establish your own operation and see it flourish. Don't be fooled, though. Even with the right idea, there will be obstacles to overcome and challenges to face. So, to help you out, we will go over the most notable startup business challenges in 2020, and how to tackle them.
No matter where you hail from, we can all pretty much agree that 2020 has been quite hectic. From COVID-19 to everything surrounding it, it seems like there have never been more problems when it comes to starting a business. But, to quote Dorye Roettger, "There are no problems - only opportunities to be creative." If you want to help your business grow and face the challenges to come, you need to have this disposition. We are, of course, not advocating careless optimism when it comes to business startups. Instead, we are merely encouraging you to do your research, not get hung up on mistakes, and approach the whole endeavor with the spirit of innovation and ingenuity.
We will first tackle the most tedious part of starting a business, which is getting the necessary finance. Unfortunately, there is simply no way around this. If you want to start a decent company, you will need to obtain some startup money. Depending on how your business is structured, this can be a lot. So, we would advise you to set out a financing plan before planning anything else. The following platforms can provide you with some viable options:
You can also consider venture capital or business incubators if you believe that your business will benefit more from such financing. The aspects to consider is how much money you'll need, and which platform will yield the best results. Make sure to factor in things like office supplies, monthly expenses, necessary tech and licenses, and basic office furnishing. If you already have office supplies and furniture, you will need to know how to proceed in regards to your office relocation. Our advice is to always and an extra 30% to your original estimate. That way, you will have a budget for unforeseen circumstances.
Arguably the most difficult challenge to face will be orienting your business goals. Here you have to take the current economy and the trending customer behavior into account. Ideally, you will find a way to use the COVID-19 pandemic and see how your line of work has changed due to it. Remember, the whole idea behind modern startups is adaptability. Our advice is to carefully study your market and see what other companies are doing. Once you do that, you'll need to formulate a basic business plan. This, of course, will have to be in accordance with your budget, as the two are closely interlinked.
It may surprise you to know that most people that start a business avoid making plans. They think that they don't know enough to make a comprehensive plan and that doing so will be a waste of time. Well, this is just one of the many startup mistakes that you'll have to avoid. Making a plan is not only necessary for proper budgeting, but it is also good practice for thinking your business through. After a while, you will be able to formulate clear goals and covey them to your workers. So, even if everything doesn't go according to plan, you still benefit from making such plans.
One of the challenges facing startups in 2020 is how to engage the market. No matter what your market is, you will need to do a lot of planning and research in order to engage it properly. This includes social media, SEO management, and local marketing strategies. Ideally, you will invest in both short- and long-term marketing, as they are both necessary, yet quite different.
Short term marketing serves to quickly boost your online presence and simply put you on the map. This is usually done through paid ads, social media influencers, or innovative promotions. On the other hand, long-term marketing is generally done through SEO management, writing blogs, and running a solid social media presence. Therefore, you'd be smart to orient your finances and your overall research so that they incorporate both marketing forms. A good idea is to start your research by joining the same online community as your customers. Your main goal in online marketing, and with website design for that matter, is to figure out how your audience thinks.
Since numerous businesses closed in the past couple of months, there shouldn't be much trouble finding office space. However, the challenge you will definitely face as a startup business manager is setting up a decent office. The reason for this is that the idea of what a startup office should be has changed dramatically. If you need to have your workers in your office, you can consider your office space in a more traditional way. But, if you can afford to have your employees work from home, you need to change your approach to office space.
Even though there is available office space right now, it is rarely cheap. So, your primary goal should be to find a commercial space that can host only the most essential workers. Instead of looking for large offices, try to find one that is smaller but in a better location. This way, you will have an easier time relocating it, if need be. Plus, by having fewer items, you will be able to prevent any problems easily and calculate your moving expenses.
In the more work-from-home oriented business set up, most of your person to person interactions will be in a meeting room. Online meetings and coordination are possible, as previous months have shown us. Nevertheless, there are certain instances when you need to have your whole team together in person in order to convey a business idea properly. So, do yourself a favor, and set up a decent conference room.
It has been a time-honored truth that finding employees is difficult. Unfortunately, this truth is something that even the startups in 2020 have to face. One of the things that we would advise is for you to mention how useful it is for employees to join a business in its infancy. Most people that are new to the business world fail to look past the money. As a startup business manager, you probably can't offer wages comparable to large corporations. But, by being a startup, you can offer your employees learning opportunities and advanced possibilities that they simply cannot find in a large company. So, when hiring, make sure to mention the advantages of working for smaller startups.
Furthermore, try to always value quality over quantity. Many experienced professionals will tell you that the people they work with are among the most important aspects of accepting a project. Most even value their colleagues over money, better work hours, or better benefits. So, when hiring, try to find people that will fit in. Ideally, you will have a hardworking group of employees that will be willing to help each other out. If someone doesn't fit, don't shy away from firing early. As a startup business, you don't have the resources for second chances. Occasional mistakes are tolerable, but bad personality traits are not something you should put up with.
With all the startup business challenges that we've listed so far, should you even start a business in 2020? Well, it depends. As we mentioned, you need to study your market and see whether it is ripe for your business idea. If you deem it is market-ready, don't shy away from starting a business. Just try to keep yourself updated as much as possible. Due to COVID-19, numerous industries have changed, for better or for worse, and will continue to do so. And the golden rule of startups is that you have to adapt. So, if you want to keep your business afloat, be ready for creative changes and courage to implement them when need be.
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