5 Things to Consider When Starting an Era Business in Covid-19

Starting a new business is not like drawing up small plans, even without the complications and risk factors in a world infected with a pandemic.

So, what are the special considerations for now, amid unprecedented and unpredictable circumstances, between the potential for new social restrictions and the prospects for a vaccine?

Uncertainty isn't extinguishing the small business economy, at least in the AS where new businesses started surging with 1.6 million applications in the third quarter, up 77 percent over the second quarter and outperforming new startup rates in the past decade.

For everyone and anyone who chooses to bet on their small business, here are five lessons that cannot be ignored or avoided in the Covid-19.

1. Secure the financial situation

Not everything you have to do yourself.  When starting a small business, remember that you are entering a world of high risk and with challenges around every corner.  To solve complicated financial problems, you can hire experts to calculate all the taxes, cash flow, and the amount of salary you need to spend.

2. Data trumps intuition, experience, or even work ethic

In the past, businesses talked about strategies supported by information technology. Currently, business strategy is definitely connected with information technology strategy. Moral and judgmental skills are still important, of course, but when an event like a pandemic cuts margins, you only have accurate, real-time financial and customer data available in the cloud.

In addition to data for business decisions, technology choice is critical for enabling remote work, contactless payments, digital sales, and customer record security. The overarching lesson from pandemic resilience is that businesses capable of transitioning to digital operations fared much better at protecting income and jobs.

3. Difference between budget planning and business scenario planning.

Developing a budget is very necessary. Using it actively as a basis for projecting various financial scenarios and planning decisions for any outcome helps you rest more calmly at night.

People will rely more on budgets that are clearly detailed, showing the impact of the best and worst case scenarios and all the implications for cash flow, staffing, investment options or capital position.

4. Take advantage of credit options before it's too late

With an interest rate of around 5%, debt is cheap, so consider using it as a weapon.  We tend to turn to credit options when we need them, often at the end when it becomes more difficult to convince the lender about your financial condition.  Creating access to a line of credit and using it are two different things.

5. Always put customer needs in consideration.

Consumers want to support small businesses, assuming we can meet them with the product or service they want and within their definition of safety, risk, convenience and value.  When the virus strikes, reliable services like salons and air travel can no longer be relied upon, while anti-germ wipes and soaps sell out.

Now, some certainties emerge.

Summer provides very strong growth for many small businesses.  Winter will change some of the options available in summer, but summer will return, the vaccine is in sight and we can begin to feel the end of this persistent uncertainty.

For small businesses, that's more than just an encouraging indicator.  Small entrepreneurs don't need to plan forever, they just need to plan for next summer.

If we can see a path to success, based on real data, taking into account various scenarios, leveraging the expertise of trusted advisors, there are many reasons to believe that the small business economy can lead to a broader recovery and that success will later be a tribute to the courage of those who  survive with his business amidst the uncertainties.

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