Big Goal for 2021: Start a New Business

As many people are setting New Year’s Resolutions during this time of year, it may be time to set a huge resolution for yourself and make it a goal to start a new business in 2021. This attainable goal is not out of reach. All it takes is careful planning and setting priorities to align yourself with opening a business.

What Does It Take to Start a New Business?

  1. Make a Plan

You can’t start a business without a plan. Hand-write a business plan that is very detailed and thought out. Often, a business plan is presented to investors or when applying for a business loan. It is vital to show that every aspect of your business is contemplated. A one-page business plan can include:

  • A hole in the market that your small business fulfills
  • A business pitch
  • Target audience
  • Strengths and weaknesses
  • Potential threats to your small business
  • Marketing plan
  • Financial breakdown, including the money needed to start a new business and the projected profits

This written out plan will give you a beginning point to start a new business. Once you get the answers to fill in all of the parts of your business plan, you will be knowledgeable to take the next step toward realizing your goal.

  1. Find Areas to Save Money for a Business

When planning to start a new business, you need to save up money for the startup costs. Look for the parts of your budget that you can save money on, like coffee runs and eating out. These costs will add up little by little each month and help you save up for your small business.

If you plan to quit your full-time job and put everything you have into your business, it is sensible to wait until you have the money saved to support yourself for 6-months. A small business owner doesn’t take home a paycheck right away. So if you are quitting your 9-to-5 job to start a new business, have the savings to back it up.

  1. Conduct Market Research

Do research in the small business industry in which you are interested. If you would like to start a dog walking business, google local dog walking services and see how many come up. Research the average price that is charged and how much demand there is in your area. Visit dog groomers and related companies that may have a pulse on the community’s needs but would not be direct competitors.

Once you have the information gathered, compare it to what you think your product or service is worth. If you are a well-trained music teacher, you do not have to match what other community music teachers are charging. Have confidence in your expertise and find a balance between what you think you’re worth and competitor pricing.

  1. Be Aware of the Risks

Every small business owners have risks associated with their business. Be sure to explore all of the possible risks and find what you can do to protect yourself and your business. Meeting with a small business expert is a good idea to discuss the potential risks specific to the small business that you may not have considered.

  1. Set Attainable Goals

You may have big ideas of growth for your small business, but remember that growth is gradual at the beginning of a startup. As you are learning the industry’s ins and outs and troubleshooting, it is essential to set realistic goals. Checking off small goals along the way will keep you motivated and increase morale.

  1. Ask for Feedback from an Industry Expert

Now that you have a business plan in place, it is good to ask for a second opinion. You don’t want to leave yourself vulnerable to having your dreams shutdown or criticized. Instead of pitching your whole business, ask for feedback on components of your business and the startup process. Of course, it is helpful to ask for advice from someone you love. But sometimes they don’t tell you what you need to hear.

Search for resources in the community with networking opportunities for entrepreneurs like the chamber of commerce. Meeting up with a local entrepreneur can help you get a good idea of how to start a new business in your community. When you seek the advice of an entrepreneur who recently started their own business, you will receive fresh advice that is applicable and easy to implement.

  1. Consider a Partner

If your business requires more starting capital than you can come up with, you should consider taking on a partner. It is also helpful to have a partner to progress the business quicker. With a partner, you can split the workload and see results faster as you put in double the work together.

Take caution in choosing a partner. You want to work with someone you trust, someone whose opinion you value, and someone who can add value to your business. Also, consider what a small business partnership may do to your current relationship with the person.

  1. Choose a Business Name

Before any significant steps can be made in starting a new business, you must choose a name. This is the fun part. Choose a name that is meaningful to you, can be spelled easily, and isn’t too close to an existing small business in the industry. Also, choose a catchy name that is short and sweet. Look to see if there are available website domains for your business name.

It can also be helpful to brainstorm ideas with a friend, sharing ideas back and forth and seeing what sticks. A friend or colleague may recognize something about a name that you overlooked, whether it sounds like an unpleasant item or is hard to pronounce to the general public. Two minds work better than one when dealing with a passion project like naming your small business.

  1. Register Your New Business

While some small businesses wait to register their business until they’ve made money, there are benefits to having your small business registered from the beginning. Whether you choose a sole proprietorship or incorporation, you save yourself from liability when the company is registered. If legal issues come up, it is the business that enters litigation, providing protection of your personal assets.

  1. Implement an Advertising Strategy

Get the ball rolling and put your work behind advertising your small business. It takes grit to start a new business, and you may not see your first sale for a long time. What is your advertising strategy? Will you establish a reputation and social media presence by posting ongoing content, regardless of the growth you see? Will you pay for social media advertisements to get your product out there? There are so many options when it comes to marketing your business.

Why 2021 Is the Perfect Year to Start a New Business

  • E-Commerce Has Grown Immensely During 2020: Although 2021 was a troubling year for many small businesses, online sales saw major growth in 2020. If you have a business that would thrive with online sales or virtual services, then 2021 is the perfect year to take advantage of the opportunity.
  • Downtime Allowed for Introspection and Career-Changing Inspiration: While extracurricular and social activities were canceled in the year 2020 due to the pandemic, many people spent more time at home. This extra time allowed for thoughtful pondering about possible career changes and doing something that you love. Take this passion with you in 2021, and continue to use that spare time to start a new business.
  • Unemployed Workforce Waiting to Work: There are many small business employees in the restaurant, movie, bars, and clubs industry that are now out of work. They are waiting to be employed, and you can make that happen. Tap into the unemployed workforce and offer new jobs to those looking for new opportunities.

2020 was a challenging year for many people with COVID-19 and countless small businesses needing to pivot to adjust to the changing safety protocols during a pandemic. These trailblazing small businesses have implemented processes now that are allowing them to thrive during the pandemic. You can learn from these small businesses and take on the strategies that helped them to succeed.

Contact Small Business Accounting Professionals

So many aspects of starting a small business can require professional guidance. When you hire a small business accountant from the beginning, you can be sure that your business is set up correctly. Our experts can help set up the business plan, pointing out possible risks and setbacks you may face. They can also help calculate the startup costs that will be needed and project when you will take on an employee or pay yourself.

If you are looking to start a new business in 2021, do not delay. You can contact Easier Accounting to learn about the bookkeeping and accounting systems needed to run a small business. Our experts specialize in small business and can answer any of your questions. Call us at (888) 620-0770.

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