Creating a successful business is not easy at any time, and the pandemic has completely rewritten the rules. However, there is good news - i...
Here are five key points to remember
Find your "why"
Your “why” is what keeps you going when things don't go according to plan and you want to give up. Starting a business is tough and your dedication will inevitably be tested. And you're more likely to be motivated if your business is rooted in something you're passionate about.
2. Find a mentor
Mentors are a great way to avoid costly mistakes. Leverage the skills and experience of others that can help you grow in business. They will be there when you need guidance, advice, and help with problems. But you don't have to have just one mentor, and it doesn't have to be a formal arrangement. You can meet them at events and communicate via email. The reality is that successful people tend to be very busy, so it's often hard to get them into long chats and meetings. However, with the rise of digital platforms, it has become easier to learn from the people you are passionate about.
3. Harness the power of digital technology
The pandemic has taught small and micro business owners many lessons about the importance of having an online presence. With limited opportunities to meet during the lockdown, many people have relied solely on digital means to sell and market their products. In addition, the use of digital technologies in the absence of large marketing budgets strengthens the position of small businesses over large ones. However, it does not hurt to learn from the past mistakes of companies, the use of social networks, which had a disastrous effect.
4. Be adaptive and open to change
Any entrepreneur wants the initial stages of a business to run as smoothly as possible, but as the pandemic has shown, the ability to adapt and be open to change is essential to survival. Many companies have had to change, so be prepared to be flexible.
5. Do your research
A recent US study found that up to 82% of small businesses that failed within five years did so due to a lack of understanding of cash flow. The more you know, the more you can control to move your business forward or if unexpected expenses arise. You may need additional funding, so before spending money on anything, create a spreadsheet and do your research on how much you really need.
There's a lot of funding and free support available, so check out the options and see what help you can get to bring your idea to life.
Here are some funding methods you should consider if your plans started with a budget of 0 UAH.
Stupid, friends and family
Every year, 35-40% of startups receive start-up capital from these three sources. The reason why the stupid ones are included is due to the risk of investing in seed startups and the lack of knowledge of this group of people. The benefits of this type of financing are that your friends and family won't need a specific credit score or large collateral to secure their investment, and they can be more flexible in terms of interest rates and repayment deferrals.
Loan
If you feel that you can repay the loan after a certain period of time, this may be a great idea. You just have to be 100% sure, because if something goes wrong, you will be in a very difficult situation! There are many ways to get a loan, so research which option is best for you.
Grants and Local Funding
The government or local authorities usually support startups by providing them with financial rewards or loans at zero interest, especially for profitable projects.
Getting one of these grants is a rather long and difficult process. On the other hand, grants tend to include a lot of control over where the money is spent.
Crowdfunding
Crowdfunding is a legitimate way to get seed money for your business, so don't be afraid to advertise your crowdfunding campaign on social media. Some crowdfunding campaigns run on a donation basis. People every day look for a cause to donate to, they like to help others. Give them a reason to believe. Also, for success, you should analyze how important the project will be in the modern world and what is its value. Crowdfunding has become so popular that there are several platforms dedicated to it: Kickstarter, CrowdFunder, and IndieGogo.
Output. The pandemic should not scare away those who are burning with their business idea. It is important to take into account all the risks, to be well prepared and not only financially, but also to establish yourself in motivation, and then you can achieve success.
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