The small business scene has changed dramatically in the last year. Small business owners all throughout the country hunkered down to deal with the outbreak. Surprisingly, in the face of a slowing economy, even more, people took up entrepreneurship for the first time.
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Despite the persistent uncertainty for small businesses across the country as a result of COVID-related limitations and supply chain delays, business and new possibilities are steadily increasing. Whether you’re a first-time entrepreneur starting from scratch or recovering from the epidemic and trying to improve your existing strategy, there are a few crucial measures to follow:
Strengthen Your Foundation
Many firms discovered that working as an independent contractor or as a sole proprietor added to the difficulty of qualifying for government grants and loans or obtaining the finance they required.
Consider incorporating your company if you haven’t already. It’s an important step toward completely separating your business and personal affairs, and some lenders will refuse to lend to unincorporated enterprises.
Take a close look at how professional your company appears while you’re at it:
Use a professional email address (and not a Hotmail or Yahoo email address).
You can even add a company phone number to your personal cell phone.
Make a professional-looking web presence that you have control over; a simple website will suffice.
Examine Your Company’s Bank Account
Small business lenders are increasingly looking at activities in your business bank account to verify your company’s financial health. To certain lenders, a business bank account is just as vital as your business credit.
Use a business bank account just for business revenues and costs, and look at it through the eyes of a lender:
Is your business largely reliant on one or two clients or consumers, or do you receive deposits from at least 8-10 sources each month? More is absolutely better in this case since you’ll be better able to weather a slow-paying client or a drop in one cash stream.
Revenue levels rising, falling, or fluctuating? Lenders are more willing to lend to businesses that have stable or expanding revenues.
How often do you have a negative account balance? An occasional NSF may not be a deal-breaker, but low or negative balances on a regular basis may cause your application to be rejected.
Develop Your Network
Business owners who were able to connect with customers, admirers, and anyone who wanted to support their companies could use that networking in a variety of ways, from crowdfunding to selling gift cards. An entrepreneur recently described how a LinkedIn post assisted him in raising $1.3 million for his firm.
Select a few methods for keeping in touch with your audience. One of those should most likely be your own email list, while the other may be a social networking platform. Then cultivate your audience there on a regular basis. If you add value to their lives, they will be more willing to help you when you need it.
Prepare for expansion
There will be once-in-a-generation opportunities to purchase businesses or assets from folks who have decided to retire and close their doors. Planning ahead of time to secure funding to take advantage of these possibilities can make it easier to act fast when the time comes.
Businesses should get a line of credit at the very least. Investigate other loan possibilities, such as SBA loans or term loans, to see what you might need to do in order to qualify.
Invest in the Future of Your Company
You can’t safeguard your company from every unforeseen event, but there are a lot of scenarios where insurance comes in handy. Take the time to assess your insurance needs and alternatives if you’ve been putting it off or aren’t sure if you’re sufficiently insured. You will not be sorry if the time comes when you require it.