The entrepreneurial spirit is strong in the United States. So strong, that even a global pandemic could not slow it down. Reports from Forbes note that the rate of start-ups in 2020 and 2021, right in the midst of the COVID-19 pandemic, did not slow. Instead the rates continued to rise and are projected to rise through 2022 as well with some analysts predicting the Small Business Association will get 5.6 million business applications translating to a 28% growth.
How did rates rise during the pandemic? This seems counterintuitive.
One of the reasons for continued growth was likely the fact that workers had more time to develop those entrepreneurial plans. They were not commuting to the office or taking business trips so they could use spare time to refine their business ideas and complete some due diligence.
How can entrepreneurs poise their startups for success?
With business creation growing throughout 2022, analysts also predict 2022 will see historically high business failure. Not all businesses that launch can succeed, and with competition high it is important to take steps to help set your business up for success. Some tips that apply for most businesses include:
- Iron out your plan. Get a startup plan that touches on the long-term vision of the business and has a clear strategy for reaching these goals. It can help to have a marketing plan and key performance indicators to track progress.
- Think about marketing. Get an email list set up, think about a website and possibly a blog to draw in potential clients and build your brand.
- Decide on a business structure. The legal entity you choose to use for the business idea helps to provide protection and, depending on what you choose, tax benefits. A legal professional can discuss the pros and cons of each business entity option.
It is also helpful to start building relationships. This includes a professional team to help navigate legal issues and financial needs as well as community contacts to help build your network. Getting ahead of these issues prior to launching can help to better ensure your startup makes it through 2022 and beyond.