4 New Rules for Entrepreneurs in 2022 - Nokristart

4 New Rules for Entrepreneurs in 2022 - Nokristart

For the past 18 months, starting a business has seemed like a terrible time. But for some entrepreneurs, starting a business is still the same – only the rules have changed.

1. Create a business plan

What's the same: You still need to write a business plan, says Frank LaMonaca, a small business consultant with SCORE in Westerly, Rhode Island. A business plan usually includes how much your product or service will cost, how you will sell it, and how much money you need.

What's different: Your online strategy should be front and center. Are you ready to connect with customers via video chat? How is your website linked? Are you effective at marketing yourself on social media? According to LaMonaca, the past 18 months have proven how relevant these questions are to today's startups.

"Digital Marketing was a solid strategy for those who survived the most. They had an online presence that connected them to their customers, their customers, their communities," he said. "Even though they were a service company ... they benefited from communicating with their customers, letting them know what's coming and where they're going."

2. Calculate the cost of getting started

What's the same: New businesses often need upfront capital to set up, open their doors, and cover expenses as sales grow. Banks are an unexpected source of income, said Jerry Herrick, a Northern California SCORE counselor. "Banks don't waste their time dealing with people for a year before they get money," he said. Herrick explained that using personal savings, friends, family, and other resources can help you get the financing you need in the first place.

What's different now: According to LaMonaca, you need more money to get started these days than you might expect. He currently recommends increasing it. "If you thought, 'I need enough money for six months,' we said, 'No, you don't know what's happening. And you need to know when the next closing is.' I am curious to know how consumers will react to what you have to do, whether it's a mask mandate or a vaccine requirement.' You have to think,'' he said.

3. Fight inertia

What's the same: Herrick says that if you want to start a business, you must create one. "You have to jump," he said. "What did you do today? ... What will you do tomorrow?"

Here's the difference: Starting a business already requires courage and tolerance for risk. You probably need more of these things.

For LaMonaca, the past 18 months have been like this: "I've had people call me and ask about when they've been through four recessions and felt their business take a downturn. And all of a sudden, it's zero revenue. They. Not 20% down, not 30% down - no income," he said. "They're shocked. … We had to pull them in and say, 'Okay, let's do it like any business challenge. Let's step back instead of messing around. Let's see if you can make money.' Save and how to avoid it.

4. Track your money

What's the same: Herrick says finding accounting software for your small business and opening a separate checking account is still a practical first step. Even before your business is open, recording all of your expenses can save you money on your taxes and keep things more organized. "Always document the money you receive," he added.

What's different today: With the complexity of changing tax laws, wage protection programs, and other state and federal business laws, being around one another may be more critical than ever. You do a wise man. LaMonaca recommends creating a financial "BAIL" team of banks, accountants, insurance adjusters, and attorneys to monitor your accounts, avoid tax headaches, reduce liability risk, and protect you. Everyone can help to do this.

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