Starting a business in 2021

Happy New Year and welcome to 2021

As the days go by and you read the headlines about the impact on COVID-19 on people, business, government and society around the world, you’ll realise that the economic and fiscal position in New Zealand is reasonably positive in many sectors, for the most part.

The picture in Food, Accommodation, Tourism and other affected industries, isn’t quite as encouraging. The level of uncertainty is still affecting business confidence and with the borders still closed, it is going to be some time before such sectors see any long term optimistic change.

Perhaps you’re feeling the same uncertainty? Maybe you’ve asked yourself, “What should I do? Is it safer to find a job or should I create a business?”  

When pondering future prospects, it’s worth considering the top economic Indicators for 2021 (as suggested by Liam Dann):

• COVID-19 – Vaccination roll-outs and future potential border opening dates
• Housing market fluctuations and pricing
• Business Investment/Confidence
• Inflation
• Crown Accounts (Fiscal position)

Are (or will) these areas be critical to your business success?  

After examining the realities of our current situation, you may decide that an uncertain market offers different opportunities (sometimes greater, but riskier benefits) than a stable and settled market. 

If you opt to proceed with the creation of a business, you’ll need to either carefully consider your focus and strategy or alternatively, create a risk mitigation plan for business future-proofing. Options and real potential still exist in our COVID affected economy, it just means navigating with extra caution and attention to detail.

Take your time and research every angle.  Articles, advisors and mentors are available – utilise them to help you decide what is best for you.

If you decide to build a business rather than seek external employment – here are some basic and fundamental points and actions worth considering or taking, to assist with success: 

• Expect hard work, long hours, shortage of cash, problems, and much more – running a business is more difficult than being employed by someone else. 
• Have a passion for what you do – know your motivation, know your ‘why’.
• Anticipate obstacles… – delays, bad decisions, external forces, budget overrun,.. Cultivate perseverance.
• Base business decisions on objective data and statistics – sometimes outcomes are counter-intuitive.
• Market Research is an investment that will pay dividends. 
• Ensure your business has a Unique Selling Proposition (USP) – How will you differentiate yourself from your competitor? You have to be able to answer the question: “Why should a customer buy your product or service and not your competitors?”
• Plan. Plan. Plan. – Get used to creating and deploying plans: 
  • A Business plan, 
  • A Cash Flow Plan, 
  • A Financial Plan,
  • A Budget, 
  • A Sales Development Plan, 
  • A Marketing Plan,
  • An IT Plan… and so on.

Plans are essential and should be living (active) documents. When you have your plans in place… create another plan that incorporates a series of checkpoints and referrals back to these plans so that your business maintains the correct trajectory, and issues are highlighted quickly.

• Use whatever technology is available – look for professional support if you are uncertain.

If you’re a risk-taker with an eye for opportunity, you’re probably considering building or reinvesting in your business. Now’s the time to talk to others to sense-check and refine your ideas. 

KEYNOTE: Most businesses fail due to a lack of capital, insufficient cash flow and lack of relevant current data

If you’re starting a new business or seeking growth, contact me for a free 2-hour assessment and report.

If you wish to learn more about me, a resume of my skills, experience and qualifications are available on my website. feel free to email me for a summary of recently completed projects.

Good luck for 2021