Based on consultations with several experts, writers and business leaders, there are 5 things a beginner can do to develop his business in 2021.
The 5 tips themselves center on careful planning, fast financial movements and a comprehensive risk assessment.
Create a Simple But Solid Business Plan
If 2020 can teach you a lesson, it is to expect and prepare for the unexpected.
Prior to this, no one could have predicted that a major pandemic would change the entire workforce, and the way. The work of many parties changed. Uri Adoni, author of the book “The Unstoppable Startup: Mastering Israel’s Secret Rules of Chutzpah”, believes that a new small business needs to think like a camel. Where the animal can survive a variety of climatic conditions.
They are resilient and can last for weeks without food or water, but still able to run fast when needed. Be sensitive to cash flow, have a lean organization, create a realistic and conservative operating budget, and make sure you don’t deviate from the original plan, “explained Adoni.
As a former partner at Jerusalem Venture Partners and former CEO of Microsoft Networks Israel. Adoni advises entrepreneurs to create and stick to their business plans. Developing a smart plan will not only benefit business operations, but it can also make it easier to get loans from the Bank. Whereas with a smart business plan, it can also attract interest from investors.
“An interested potential investor is usually looking for a business with a solid plan, can operate well, can compete with competitors, plan money management carefully and reduce risky long-term financial commitments,” said Adoni.
Simple and Thrifty Life
Many microbusiness owners try to separate their personal lives from their new companies.
One thing you need to know when building a personal business, is that the business will become a part of your life. The issue of costs, business barriers and the success of the business are all part of your interests.
Tracy Timm, founder of The Nth Degree Career Academy and former human resources advisor stated that simplifying the cost of living should be the main goal entering the new year period. One effective way is to try to cut personal budget expenses.
“Save all the remaining money, stop eating out too often, stop excessive streaming services and if you can, make your own coffee, and so on”
“The simpler your life, the more time, money and energy you will have to dedicate to starting the business of your dreams.” said Timm.
Collect Data for Future Plans
While it is good to proactively make a business plan and start saving as early as possible, it is also important for someone to review their individual financial conditions.
Knowing your financial flow well, from expenses and income as well as how the financial management is important to review.
“It’s important to really understand your cash flow, especially for the start of the new year. Set goals, create a budget, and allocate funds for incidentals,” said Kathryn Petralia, founder of Kabbage. Which is one of the online business credit lending companies in Atlanta, United States. .
Apart from cash flow, it is also important for novice business owners to collect business data from the start. For example, by not solving customer problems from the start, you run the risk of not developing good business growth.
“We’ve found that if you make sure every product decision and feature is rooted in customer benefits rather than profits alone, then business growth usually takes care of itself.”
“This has also been proven properly and I myself encourage various companies to adopt the same business approach,” said Petralia.
Be careful when considering business risks
Risk is an integral part of starting a small business. It depends on how the business is built.
But if the effort is so dependent on you, then whatever problems and mistakes that will occur along the way will be borne down on you. This is also considered to endanger the finances and personal assets of a business owner.
Regardless of the stage of the business and how much money the venture has made, never ignore. The potential risks and consequences, according to Andrea Sager, a small business attorney.
“If you have a business, don’t let the business be exposed to so many risks and always think about precautions you can take to avoid legal trouble,” Sager explained.
It is important for business owners to hire the services of a lawyer or legal team. To create customer contracts or waivers if needed. Legal issues are one of the most difficult business problems for ordinary people to handle, so don’t hesitate to seek help.
“Never hesitate to contact a small business attorney before starting your business. So that later you can find out the specific risks that could be involved in your business,” said Sager.
Build Hope in 2021
It’s easy to look back at 2020, and question the conditions from 2021. Although there is a truth that most small businesses are unlikely to survive a pandemic. This optimism is still being demonstrated by many.
Even starting a business from a difficult state can usually be a catalyst in itself. To be much more motivated towards the path of success. “To be honest, I think there is no better time to start a business. Than when you have experienced significant setbacks or experienced life-long hardships,” said Tim.
Even for Sager himself, 2021 might be the perfect time to start a dream business.
“So many people entering the new year will question the stability of their income from work. So starting a side business could be an ideal solution to the problem,” he said. The fact is that some of today’s successful companies, such as Uber, Airbnb and Slack, actually started operations during the 2008 economic crisis. It also shows that tragedy is not inherently the same as success.
After a period of crisis, there will always be new needs arising that require new solutions, and companies that can offer them can start to be recognized and developed, “added Sager.