This might be a turbulent time for businesses all across the world, but things won’t stay this way forever. Indeed, enterprising individuals are using this time to grow their business and prepare themselves for the year ahead. And with a recent report by Inc. showing that the Bay Area is still one of the best places for starting a business, creating a business plan as early as now puts you in a prime position to get things up and running in 2021.
To help you do just that, below are some essential tips for launching your California-based startup by next year.
Get your business plan in order
This point seems simple in practice, but a solid business plan moves your startup idea from dream to reality. Your business plan will also need to account for undertaking operations in line with the new normal. For example, the recent Y Combinator Demo Day was all held via Zoom, which just goes to show that startup life as we know it is now changing. This means including things like setting up a schedule for virtual team meetings, outlining the process of reaching out to suppliers, and also how you’re going to engage in remote hiring. All of these considerations will show potential investors that you’ve thought everything through and that you’re serious about launching your business.
Establish your business as a legal entity
Choosing the right business entity can establish your business as a proper legal structure. Limited liability companies (LLCs) are a good choice for startups in this regard, as they’re easy to set up and don’t require you to fulfill all the bylaws that come with being a corporation. ZenBusiness maintains that California LLCs can benefit from better tax options, as your startup is exempt from paying federal tax, as well as limited liability protection. What’s more, California has a host of online resources available to help small businesses thrive — the catch is that most of these resources are only made available to legitimate businesses.
Start taking care of your team now
There’s a good chance that you’re already working with a small team to organize your efforts and get operations running as smoothly as possible. If so, you should be working now to take care of your people and ingrain this into your corporate culture. Our previous post on Working From Home highlights that people are adjusting to this new normal in their own ways, but that doesn’t mean you can’t help your employees along. Even something as simple as offering flexible work hours or sending your team members a small gift in the mail can go a long way. After all, motivated and happy employees are the key to sustainable business success.
Be as conservative as possible
Last but not least, try to be as conservative as possible when making any sales projections. This unfortunate truth comes out of the fact that we’re still working under the shadow of COVID-19, and it’s likely that the pandemic’s effects will be felt well into the next year. It’s normal to want to have big and grand dreams for your startup, but don’t be afraid to start small now. Building a loyal customer base, having close relationships with all your suppliers, and strengthening your internal teamwork will all work to help you scale your business up in due time.
Setting up a startup is a scary process, even without the pandemic. When you find yourself getting too swayed by the excitement of it all, return to these four principles to ground yourself. Don’t be discouraged though as business experts believe that startups are vital for California’s economic recovery. The sate needs new ideas and enterprises.
Exclusively written for SiliconValleyForum.com
By: Rosetta Juliet