Looking To Launch A Business in 2021? Here's What You Need To Know

The past year has been difficult for all of us. We had to face unprecedented challenges and adapt to a “new normal.” Be that as it may, most people are still hopeful for 2021, setting new goals and resolutions. We may still be amid these trying times, but it should not stop you from pursuing whatever it is that you want to do. Want to start your own business? The new year presents several opportunities for aspiring entrepreneurs. Learn from the past and have the right mindset to launch a business.

What do you need to know to launch a business in 2021? Here are several factors to consider:

Know And Understand Your Customers And Prospects.

Now more than ever, it is crucial to think about what your consumers need and how you can meet those needs. Delve into consumer behavior and buying patterns. This pandemic has a significant impact on the way consumers purchase products and services, as well as how they interact with brands. One thing to keep in mind is that with limited face-to-face interactions, most consumers go online for their purchases. However, it is still important to have human connections. The key is finding the right balance between technology and human touch to meet the needs of consumers and maintain good relationships with them.

Create A Solid Digital Marketing Plan.

As they always say, “if you fail to plan, you plan to fail.” Launching a startup calls for a good digital marketing strategy that covers everything you need to know and do to make your business a success. Since your customers and prospects are most likely taking the digital route because of the pandemic, it is essential to have a strong digital presence and develop long-lasting business relationships.

The pandemic has made marketing more challenging, but it’s not impossible. Things have simply changed.

• Remember to keep your goal in mind and be honest with what you offer. 
• Set up a website that is user-friendly, with detailed descriptions of your products or services. 
• Make it easy for your consumers to contact you in case they have inquiries or concerns. 
• Actively seek feedback and make sure to constantly improve your offerings and customer service.

Take Advantage Of Social Media.

Your digital marketing strategy should include a social media presence. Platforms such as Facebook, Instagram, and Twitter are great avenues for promoting your business. Keep your followers updated by posting or sharing information, images, and/or videos regularly. And, don’t forget to interact with your followers by answering their questions or responding to feedback. 

When it comes to launching a startup, you need your followers to spread the word about your business and increase brand loyalty. Eventually, you may get the attention of influencers or partners who can significantly help in making your business a household name. 

Develop A Long-Term Business Plan.

If there’s one thing that the pandemic has taught us, it’s the importance of being prepared. 2020 was a challenging year for businesses across industries and that hardship may continue for some time. Many were forced to lay off employees or shut down operations. Keep your startup recession-proof by creating a long-term business plan that also includes financial planning so you can be ready no matter what lies ahead.

Carry Adequate Insurance.

One of the main things to do when launching a business this year is to purchase commercial insurance to protect. In addition to being a legal requirement in most states, commercial insurance protects your assets and can help keep your business going in times of crisis. Some may think that it’s an additional expense, but, in reality, it’s a wise investment especially for those who are just starting their operations.

Every business has its own share of risks, so policies differ based on your business’ needs. In general though, here are some of the policies to keep in mind when launching a business:

General Liability Insurance – This protects your business from financial losses due to claims associated with third-party damage to property or injury. This policy is usually a requirement for entrepreneurs who are leasing or buying a commercial space for business.

Commercial Property Insurance – Covers the expenses that might arise if your business property is damaged due to an accident, such as a fire. It also covers other physical assets including computers, office equipment, and documents that you use in your operations. Bear in mind that even if you are working at home, like many people are because of the pandemic, you may still need to carry Commercial Property insurance. If something happens to your workspace, your homeowner’s policy may not cover the damages. 

Worker’s Compensation Insurance – If your employees get ill or injured as a result of doing their job, this policy will cover the expenses such as medical and rehabilitation treatment costs. Make sure to check with your local authorities, as every state may have a different set of rules regarding this policy. For example, some states require this policy as soon as you add your first employee to the payroll, while others require it after you meet a revenue threshold. 

Cyber Liability Insurance – In this day and age when most transactions are digital, it is crucial to carry this policy. Cybercriminals are everywhere, targeting not just large enterprises but small businesses or startups as well. A single claim associated with identity theft or data breaches can mean huge financial losses, so make sure to purchase this insurance.

Launching a business, regardless of industry, comes with risks. There may be changes that are out of your control.

Many businesses struggled in 2020 because of the pandemic. Some had no choice but to lay off employees, while others shut down. But don’t be discouraged. Remain hopeful that better days are coming. Know and understand your customers, set up a solid marketing and business plan, and carry adequate insurance. Learn to adapt to changes and be flexible. With these tips in mind, your business can be a success. 

Emily is the Content Marketing Specialist at CoverWallet, a tech company that makes it easy for businesses to understand, buy and manage commercial insurance online. She has written for several outlets including Inc., Ooma, and Fundera covering small business news and advice.

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