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4 New Rules for Entrepreneurs

4 New Rules for Entrepreneurs! The previous 18 months may have given the impression that now is a bad time to start a company. However, for some entre
4 New Rules for Entrepreneurs! The previous 18 months may have given the impression that now is a bad time to start a company. However, for some entrepreneurs, the methods for launching a firm remain the same—just the restrictions have changed.

Two small-enterprise experts discuss how COVID-19 has rewritten four essential business concepts and what the route to success looks like for new businesses in 2022.

Rules for Entrepreneurs
Rules for Entrepreneurs 

1. Create a business strategy.

According to Frank LaMonaca, a SCORE small-enterprise mentor in Westerly, Rhode Island, you must still prepare a business plan. A business plan will normally contain information such as how much your product or service will cost, how you intend to promote it, and how much you'll need to produce to break even.

"I believe the underlying business concept is... proven and true," he continues, "and that definitely does not alter with COVID." "When it comes to starting a company, a lot of individuals don't even address the question, 'How much money do I need per month to live on?'" LaMonaca explains.

What has changed: Your internet approach must be prominently displayed. Are you ready to communicate with consumers using video chat? How engaging is your website? Do you know how to use social media to sell yourself? According to LaMonaca, the last 18 months have shown the importance of these topics for entrepreneurs today.

"Those that fared well had extremely strong digital-marketing strategies." They had an internet presence that allowed them to communicate with their customers, clients, and co-workers, "he adds. Even if they were a service firm, they profited from having a relationship with their customers, keeping them up to date on what was going on next and where they were heading.

2. Determine what you'll need to get started.

What remains constant: New companies often need a large sum of money to set up shop, open their doors, and pay their expenses as sales increase. According to Jerry Herrick, a SCORE consultant in Northern California, banks are an unlikely source of beginning funding. "Banks don't spend time dealing with people who are a year away from generating money," he adds. Herrick says that you are more likely to get the first money you need by using money from yourself, friends, family, and other sources.

What's changed now: According to LaMonaca, you'll probably need a lot more money than your estimates imply to get started these days. He suggests increasing it immediately. "If you're thinking, 'I need enough money for six months,' we're saying, 'No, you have no idea what's coming.'" And you have no idea when the next shutdown will occur. You have no idea how your consumers will respond to what you need to do, whether it's mask regulations or vaccine requirements.' "I mean, these are things you have to consider," he continues.

3.Combat inertia.

What is the same, Herrick explains, is that in order to establish a company, you must first start one. "You have to leap in," he adds. "What did you do today?" "What are your plans for tomorrow?"

What's new: Starting a company already requires guts and risk tolerance; now you may need even more of both.

"I had folks phoning and begging for time who had weathered four recessions and believed their company was recession-proof," LaMonaca said of the last 18 months. And then they suddenly had no income. "Not 20%, not 30%, but zero revenue," he adds. "They were stunned... We had to shake them out of their stupor and tell them, 'OK, let's tackle this like any other business difficulty.' Let us take a step back and not panic. "Let's find out how you're going to save money and get through this."

Keep track of your money.
Finding accounting software for your small company and creating a separate bank account for it are still critical initial steps, according to Herrick. Even if your firm isn't open yet, keeping track of all of your expenses may help you save money on taxes and make things a lot more organized. "Always keep track of the money you get," he advises.

What's new now: With the intricacies of changing tax laws, the Paycheck Protection Program, and other state and federal company restrictions, it may be more necessary than ever to surround oneself with competent individuals. LaMonaca suggests building a financial "BAIL" team comprised of a banker, accountant, insurance professional, and lawyer who can all assist in monitoring your finances, avoiding tax issues, decreasing liability risks, and protecting you.

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