Creating a successful small business isn’t easy at any time, but after businesses worldwide took a hit during 2020, it may seem even more difficult these days. But don’t let timing hold you back – 2021 is just around the corner, and while there may be more challenges ahead, there will also be more opportunities.
These are some common pitfalls in starting and running a small business that can keep entrepreneurs from success:
- Running out of money or not having an adequate budget
- Losing customers to the competition
- Not building name recognition
- Not interacting with the target audience
- Not creating brand loyalty
- Unforeseen issues that impact business – like a pandemic
Luckily, for every obstacle, there’s a way to build a bridge over it, around it or even through it. While there are plenty of individual, unique problems for each basis – and individual, unique solutions – many of those solutions can be distilled into seven building blocks that will help to cut problems off before they occur:
- Find enough backing.
- Know your audience.
- Build your brand before you launch.
- Use social media marketing.
- Tell your story.
- Focus on customer service.
- Be adaptable.
Let’s look at those key areas and how they can pave the way for success for your business this coming year.
1. Find enough backing.
Financing a business venture can be tricky right out of the gate. You must have a clear idea of what the company will do and what the demand is. You must also package that awareness in a way that convinces investors that your small business has real potential to survive and grow.
Depending on the type of business, of course, your initial investment needs will vary. But it’s important not to write off the possibility of backing simply because you feel that your company is too small to warrant outside investment.
Even if you plan to run a small company offering products that you can guarantee yourself, there are other aspects of success that require money, such as marketing and branding (more on those later).
According to business investment and economy specialist advisors MaRS, most of the main barriers to starting up and successfully running a small company involve backing money. Basically, without adequate backing, you may not be able to get your company off the ground. Even if you are able to launch it, you may not be able to pay for the overhead, marketing, employee training and other necessities to keep the business from drowning. The time to secure adequate funding is before the business launch, in order to ensure that the company doesn’t falter at any point during the all-important first year.
You have several options to find financing, such as turning to friends and family, finding an angel investor, and the increasingly popular choice, crowdfunding. But this only really becomes a building block for business success when it is done at the right time, to the right degree. [If you’re ready to look for outside financing, you can browse our reviews of the
Read More: Tips for Building Your Business in 2021