With extensive experience in industries such as tech, gaming, education and real estate, thought leader Roman Semiokhin is well aware of what it takes to create a successful business in a post-pandemic world.
2020 was a year of great financial uncertainty, with Covid-19 impacting virtually every industry, and business leaders required to adapt to major upheavals. Nevertheless, just as the pandemic reaped devastation in many circles, it also created significant opportunities in others. In one study, 92% of small businesses reported that they had to reinvent themselves to weather the Covid-19 crisis. This article explores priorities for establishing and growing a business in 2021.
Draft A Business Plan
Whether jotting down professional goals or creating a formal business plan, it is vital for business owners to record their ideas in a coherent way so they can be shared with stakeholders and potential investors.
In an increasingly digitised age, this is easier than ever before, with documents stored on the cloud accessible to all. Sharing ideas in this way creates consistency and scope for collaboration, providing the perfect platform for ideas to evolve over time – with changes made, saved and shared automatically.
In terms of raising collateral from outside investors, business owners must make an important choice. Will they secure funding in the form of equity finance or debt finance? Are they prepared to relinquish a share of the company, potentially surrendering a degree of control over it at the same time? Or would they prefer to borrow the money, potentially incurring hefty fees and interest repayments?
Once an entrepreneur has chosen their preferred route, it can be tempting to accept the first offer. Nevertheless, it is important to keep your options open, striking a deal that is right for you – irrespective of whether it is a debt or investor relationship. Many successful businesses operate on a partnership basis. However, in terms of partners or co-founders, choosing the right team is critical.
Focus On The Core Customer
Now more than ever, it is important for brands to build a connection with consumers to create interest and excitement about products or services. To do so, the entrepreneur must first identify their core demographic, tailoring marketing strategies directly to them. Naturally, any business owner wants to appeal to a wide audience, but realistically, it is far more effective to pare down advertising targets, honing in on bread-and-butter customers that a product or service is more likely to appeal to.
Utilise Social Media
In this digital age, social media is a critical tool, with 52% of new brand discovery occurring on public social media feeds. Advertisers increasingly rely on social media channels to pull in new customers, with social media advertising expected to generate somewhere in the region of $50 billion in revenue in 2021.
Paid social ads are a popular conduit for businesses seeking to let consumers know about new products, with 31% of 16 to 24-year-olds discovering new products this way. Influencers are also a popular mode of advertising, with 60% of Instagram users reporting that they found out about new products on another user’s profile.
Build Lasting Relationships
Savvy business owners regard existing and potential clients, as well as employees, as people they hope to build an enduring relationship with. After all, businesses offering an excellent product or service that invest in building strong relationships with customers will potentially have those customers for life. The best way to invest in a business is by adopting a consumer-centric approach and putting the customer first.
Be Prepared To Pivot
The Covid-19 pandemic underlined the need for businesses to remain agile and adaptable like no other period in history. Pivoting is a powerful, potentially transformative tool not just for digital ventures, but for traditional businesses too. Take for example restaurants that were forced to close during the lockdown, adapting their business to provide takeaway and meal delivery services. In a rapidly changing situation like the pandemic, pivots can offer a sustainable path to profitability, preserving and even enhancing a brand in the minds of consumers. The Covid-19 crisis proved a stark lesson in the importance of business evolution and adaptability.