The first few months of the pandemic saw a significant decrease in the number of active business owners in the United States. This situation translates to the closure of over 100,000 businesses across the country.
But the situation was short-lived as authorities noted an unexpected surge in new business applications in the third quarter of 2020. The surge came after people recognized the opportunities available to them after the pandemic started.
And with the improving situation in the country, entrepreneurs may start planning to open new businesses even before the pandemic ends. Here are the things that entrepreneurs should consider before setting up a new business.
Identify the Reason for Starting a Business
The first thing that entrepreneurs should do is to find a reason for starting a business. It focuses mainly on the motivation of the entrepreneur. Without a reason, the entrepreneur will find it challenging to set goals they want to reach when they start the business.
The reason may be a passion for the service or product that the entrepreneur wants to offer. It can also be the need to help the community. The entrepreneur may have also lost their job during the pandemic and want to start a business as their source of income. The reason should provide enough motivation to the entrepreneur so that they can face the challenges that come with starting a business.
Look for a Pain Point
After identifying the reason for starting a business, the entrepreneur can look for pain points in the market and deal with them. These pain points are issues that consumers face every day. The business should focus on these pain points and provide solutions to them.
The pandemic caused consumer habits to change, increased the demand for some products. Since many people stayed home, the demand for home improvement, cleaning, and delivery services increased. People also started buying fitness equipment to keep themselves healthy after gyms and fitness centers closed their doors to prevent the spread of the virus.
These were some of the pain points that many entrepreneurs focused on and built their businesses to address them. But the current situation has improved compared to last year. The authorities already administered more than 325 million vaccine doses. This means some pain points that people experienced last year may have changed. So, entrepreneurs should identify the new pain points and build their business around them.
Hire the Right People
Hiring the right people has a significant effect on the business when it starts. When an entrepreneur hires the wrong employee, it will affect the morale of other employees. A disengaged employee does not pull their weight, which can cause burnout among the other employees who work on covering for the wrong hire.
A wrong hire can also cause tension in the workplace. The tension can cause good employees to leave the business, which is a high price to pay for a business that is only starting. Due to this, entrepreneurs should make sure to look for the best employees in the market.
When entrepreneurs have a lucrative offer, they can expect a sizeable number of applicants for each job posting. But it can be challenging to choose the best among the pool of applicants. Therefore, the entrepreneur should use an Applicant Tracking System. Using an ATS tracking software solution allows the entrepreneur to find the best applicants for the jobs. Aside from being user-friendly, some of these programs facilitate candidate management.
Leverage Digital Marketing
With consumers spending more time online due to the pandemic, it’s online sensible for entrepreneurs to use digital marketing to connect with their customers. They should develop a strong digital marketing strategy to improve their online presence and increase revenue.
Aside from reaching their target market, entrepreneurs should also build a solid relationship to increase customer loyalty. The business should show empathy in their messages and constantly communicate with their customers. The message should show the customers that the business is ready to meet the challenges of the health crisis together with them.
But the business should also demonstrate this through its actions so that the customers know that the business is serious about its message. At this point, the business should not only focus on promoting its products, but it should also empathize with the situation of its customers and provide encouragement to them so the customers will remain loyal to the business.
It will take a lot of practice on the part of the entrepreneur. But once they can send an effective message to their customers, they can look forward to higher revenues in the future.
The current situation offers a lot of opportunities for entrepreneurs who want to start a business.