The pandemic saw a surge in new business applications after people saw opportunities during the health crisis. Many of these businesses were in the retail industry and focused on online sales to reduce operating expenses.
Since around 20 percent of small businesses do not survive their first year of operations, new business owners need to consider some tips to increase their chances of growing in the market. Here are some tips that new entrepreneurs should consider when they set up a business.
Prepare for Unexpected Expenses
Before they start their business, new entrepreneurs have already prepared a budget and for the business. They already have sources of funding, both private and public. But they should think about unexpected expenses that will come out once they launch their businesses.
The improvement in the health situation has made it enticing for businesses to open physical stores after states restrictions and allowed people to go around unhindered. But entrepreneurs should consider the added expenses when they open a brick-and-mortar store.
Aside from rent, they should also consider utility expenses and the cost of keeping the store safe for both employees and customers. Entrepreneurs should remember that the pandemic is not yet over, so they should take the precautions necessary to keep their stores safe. Other expenses that they should take into account are office supplies, licensing and permits, security, cleaning services, and other professional services that the business needs to stay open during the pandemic.
Know All Aspects of the Business
New entrepreneurs, particularly millennials, should remember that this is their business and not anyone else’s business. Therefore, they should make sure they know everything about it. They should understand all the processes and systems in the business. They should also know all the products and services the business is offering in the market.
Knowing everything about the business increases the chances of succeeding in the market. The entrepreneur will know if an employee is doing the right thing in the business with this knowledge. He should also prepare to step up in case there are issues in the business that he needs to handle.
Aside from the operations, the entrepreneur should also make sure to make the business enticing to potential employees. With the number of new jobs available increasing each month, the entrepreneur should offer more than just a good salary and healthcare benefits.
He should also offer more benefits for his employees. The entrepreneur should work with a reliable company for their defined contribution plan to protect the funds from the uncertainty of the economy. These companies should assign financial managers who have the interest of their clients in mind to safeguard their investments.
These added benefits will increase the business’s appeal in the job market, and more candidates will apply for a job in the company.
Millennial entrepreneurs have learned a lot from college. But the business theories they learned are nowhere near the real thing when starting a business. The theories do not prepare them for the failures they will experience, and they only have themselves to rely on. Thus, new entrepreneurs have to continue learning when they start their businesses.
They should maintain an open mind when running the business. If they have employees who have more experience than them, they should consider their suggestions and recommendations when they run the business. New entrepreneurs should also look for a mentor who has extensive industry experience. But even if they ask for advice from their mentors, they should make their own decisions depending on the business situation.
Do Not Be Afraid to Make Tough Decisions
One thing that new entrepreneurs should be ready to do is to make tough decisions in the business. These decisions will affect the company and the employees. Even though they do not want to make them, entrepreneurs should prepare for them.
While they can consider delegating some tasks to the employees as the business grows, entrepreneurs still have to make the tough decisions since they established the business. These decisions range from deciding to add more products and services to the lineup of the business to closing one branch that’s not doing well in the market.
Entrepreneurs should also decide to let go of some employees who are not performing well. Similarly, they decide who they are going to promote in case the business grows, and they need someone to handle some of the tasks in the business.
Many businesses have opened during the pandemic. Find out how entrepreneurs can grow their market and increase their profitability during a health crisis.