In recent times there have been a few more challenging years to start a business than in 2020. Entrepreneurs can’t always pick and choose when they make the leap, however, and if you’re already partway through the startup process, then putting it on hold can be costly. Is it possible to push through the difficulties that this year brings? Many businesspeople think so – and if you get it right, you could take advantage of reduced competition to establish yourself much more quickly and effectively than normal times would permit.
Quarantine
How do you start a business if you have only limited access to the outside world and in-person meetings with other people are strongly discouraged? In actual fact, a lot of the groundwork needed by a start-up can be done from anywhere with a good internet connection. You can use tools like Skype or Zoom for meetings, and you’ll find that most people are open to this. The fact that a lot of individuals are bored and looking for things to do creates an ideal climate for market research because they’re more active on social media and are more willing to answer questions or fill out surveys.
Most banks and other lenders are offering online meetings to discuss finance, and businesses you might want to engage with for supply or distribution are generally available for negotiation even if they’re not currently active. If you’re not able to go into production as soon as you’d like, you can spend that time doing other important things like setting up a website and developing marketing materials.
Economic uncertainty
Currently, there is a lot of uncertainty about the economic outlook for the next few years. That can make it difficult to predict things like the cost of materials, the wages you will need to pay to retain staff and the prices that your customers will be willing to pay. In this situation, you need to take a more flexible approach to forecasting: one focused on proportions rather than on numbers. Extend your 10% safety margins to 15% and prioritize staying flexible – stay up to date on alternatives to your main suppliers and service providers and try to avoid being bound into long contracts.
Be wary of overextending yourself financially – in an uncertain situation, cash reserves are a valuable asset. Bear in mind that a lot of companies will be taking a fresh look at their trading options in the near future as others go under, so if you have something appealing to offer and you’re well-positioned to scale up your operations, the situation could weigh in your favor.
Recruitment
If you need to bring in more people in order to develop your start-up, you may feel that the present situation places you at a particular disadvantage. It doesn’t need to be that way. Increasingly, employers are finding that online recruitment works better than the traditional way of doing things. Just ask Joanna Riley, who launched Censia when she realized that artificial intelligence software could read and interpret résumés and portfolios far faster and more effectively than humans.
By examining thousands of potential employee profiles online, the technology can help you pinpoint the people who are the best fit for what you need. This means that you can target those people directly to see if they’re interested in working for you, then quickly whittle down to a shortlist which makes interviewing online a practical option. Don’t worry if the uncertain situation means you can’t offer a definite start date – many people are currently finding that their existing employment is insecure, so will still be willing to consider you.
Networking
Building up your network of useful connections is always important in business but never more so than when you’re new. While many conventional networking opportunities are cancelled or on hold this year, there are alternatives, and you may find that it’s actually easier to reach high-powered people when their routines are disrupted.
Seek them out on social media platforms, online industry forums and work-focused sites like LinkedIn. Find out who you have in common, or who they have in common with your friends, and start building pathways of acquaintances through which you can get to know them. If you’re finding it hard to chat casually during online conferences, bring up the chat sidebar that most teleconferencing platforms offer and use it to introduce yourself to interesting people. They’ll often be happy to take that further in email later or arrange to chat online one to one. Connections forged in this way are generally less formal, so there’s room to form a stronger personal bond.
When facing major challenges like the one that 2020 has brought, it’s more important than ever to work smart, not just hard. Start-ups guided by good strategy and led by people who really have the drive to persevere have the potential to do very well indeed in a market that’s as full of opportunity as it is of hazard.