Will 2021 be the year you finally start and build your first business?
The new year is here at last, and with all the New Year’s Resolutioners, there’s never a better time to begin your business (espeically with the current job market voltalitiy).
The implications of COVID-19 has meant millions of self-starters have had to take their company’s online, think outside the box, and do things differently. Many are proving that it's’ possible to start a business from your own home with a cell phone and a laptop.
The brick and mortar model is no longer essential for building your brand. You can do it on your sofa with a laptop and a Canva account! That being said, the accessibility of building a business in 2021 might be better, but it’s still a demanding task to undertake.
There is no such thing as a get rich quick business, even side hustles take work! So if you’re hoping to build a business in 2021, here are four essential tips from business owners to consider before you start.
Business Tips For Starting Your Business
These tips are not designed to over-simplify business ownership, it's not as easy as just filing for an LLC and “Hey, no you make money!” No. However, these business tips will help you get started with some of the basics.
First, starting with protecting yourself!
1. Protect Your Personal Assets
Building a business isn’t always easy, and 50% will fail in year one. This is not to scare you, but things can go wrong, and you must protect your personal assets if this happens.
The best way to do this is by forming your own LLC (limited liability company). I created my first LLC back at the start of 2018 to house my blog, my digital marketing company, and my branding company all in one.
This will ensure all your personal assets are protected. LLC’s differ in every state. For example, creating an LLC in Texas will be different from let's say Virginia.
An LLC can be confusing, especially if you’re new to the entrepreneurial world, but each state makes the process simple and you can visit your State Commision website to file for an LLC.
However, there are experts who help new owners with protecting their business and getting things off the ground, without missing a step. Creating an LLC will differ depending on your location and situation, so you need to create the perfect LLC to separate your business from your personal life. This is why many new entrepreneurs choose to go with a company that specializes in this type of work.
2. Be Prepared To Invest
You know that age-old saying, “you have to spend money to make money?” It’s true.
You need to and will have to invest money to make your business a success. While you can certainly invest time and less money because of the internet, you will have to make a capital investment of some sorts.
Whether it’s for protective legislation like the LLC or to ensure the best functionality for your website, or even to hiring a social media expert, there are things you will need.
Now, you need to be spending the right money to make your business possible and appealing to your potential customers, which means doing research! For example, in 2017 when I started my blog, I didn't do enough research.
I ended up spending $450 to start my blog when I really could have spent $150. While I learned, a little more research would have been beneficial. So while you do want to invest in your company, you also want to make WISE investments.
Related: How to Invest in Yourself
3. Embrace Failure
One business that boomed exponentially during the pandemic is Amazon.
Founder of the E-commerce company, Jeff Bezos believes that the key to a successful business is not being adverse to failure. At the Amazon's Re: Mars conference in June 2019, Bezos told budding entrepreneurs, “Take risk. You have to be willing to take risk.”
Following this by encouraging listeners to not fear failure, but embrace it: “We need big failures in order to move the needle.” According to Bezos, it’s important to embrace failure. We must learn and develop from the lessons failure teaches us.
This is the mindset you must adopt if you want to be a business owner in 2021 and beyond!
I remember when I started my digital marketing company I thought I would be making $1,000 – $2,000 per client, and I could easily land 5-10 clients in a matter of weeks.
Five months later I had one client. However, if I quit, I would have never gotten to where I am now. And while I personally still have a long way to go, you can learn the same mindset from some of these entrepreneur interviews here:
4. See The Big Picture
No matter how small your business is, you must see the big picture.
Knowing WHY you’re starting your business and reminding yourself of this as motivation when times get tough is essential… and here is a tip, money isn't your why.
Consider what your long term goals are as well as the reason you started your business in the first place. This will help develop your business plan and fuel your own ambition.
Starting your own business is a big decision. It’s key you learn from those who have done it before. From legal legislation to personal ambition, there’s a lot to consider when beginning in this ambitious line of work. 2021 can be the year you build your business. Make sure you keep these tips in mind as you start your new venture.
Adopt long term thinking if you want to be a successful business owner!
When it comes to business ownership, entrepreneurship, and the new stages of owning – it is vital to recognize that there is a learning curve.
Unlike traditional employment, where if you take a few weeks off or mentally check out, in business ownership, you are ON a lot more often. You will deal with more headaches, more ups and downs, and things will seem a little crazy at times – but you will also have the ability to create greater rewards for yourself.
In addition to the legal tax advantages, the extra income, and the ability to pursue an area of expertise – owning a company is fun if you like challenges.
Everyday I personally wake up with a new set of goals and ideas to tackle, and while I have to remind myself to be patient with the results, I also recognize I have to be relentless with the work ethic!
Q: Do you own a company? If so what tips would you add?
Josh writes about ways to make money, pay off debt, and improve yourself. After paying off $300,000 in student loans with his wife in less than five years, Josh started Money Life Wax and has been featured on Forbes, Business Insider, Huffington Post, and more! In addition to being a life-long entrepreneur, Josh and his wife enjoy spending time with their chocolate lab named Morgan, working out, being outside, traveling, and helping others with their finances! I got serious with money when I used Personal Capital to track my finances.