The COVID-19 pandemic caused the American population to re-evaluate their employment in a major way. As a result of job losses due to the international pandemic, many considered a career as an entrepreneur as the economy witnessed one of the biggest spikes in applications for business creation.
Despite the newfound popularity of small businesses, their survival rate is lower than you would expect – an indicator of just how incredibly tough it is to thrive in this industry. Small business owners often miss out on these five attributes when starting out.
1. A Good Business Name
The importance of a good business name cannot be understated – it is vital for any business that desires substantial, maintainable growth in the future. A good business name is simple, professional, and memorable, and meeting this checklist of requirements will produce a name that potential customers cannot get out of their minds.
It is important to encapsulate the image you want thoughts of your company to conjure in your business’s name – it is always in a business’s best interest to try and link its brand in with its name. It creates an overall feeling potential customers can associate and relate to a business through.
Producing a name that is successful in these ways can be incredibly challenging, which is why it is recommended that small business owners take advantage of an online business name generator in order to assist in this process.
2. Appropriate Business Structure
There are two primary recommendations for small businesses to structure their businesses as: corporations and LLCs. Limited liability companies (or LLCs), offer their own two main benefits that small businesses, in particular, can make the most advantage of. The first of these is this structure’s limited liability.
What this means is that a business’s liability for its debts is limited to the assets of the business. Furthermore, the personal assets of the owner are off the table in the eyes of the law for the purposes of settling business debts – unlike informal business structures like sole proprietorships and general partnerships.
The second benefit is passthrough taxation. This means that LLCs are not subject to the ‘double taxation’ of corporations (i.e. corporate tax on profits, then personal income tax on the owner’s salary, which is drawn from the profits). This is because the tax ‘passes through’ the company and is only paid by the owner in the form of personal income tax.
3. Strong Business Idea
In the most basic terms, the business idea is the reason a company is established. At least initially, a business’s idea will be the driving factor behind almost every decision it makes. These decisions could include the products or services it decides to offer, as well as how these goods are marketed.
It is for this reason that it is paramount that a business is founded upon a strong idea. Since everything related to the business flows from the idea it is established on, a good idea will only bode well for the business as time goes on. Analyzing current and future market trends is a good starting point to discovering a lucrative business idea.
4. Good Marketing
Marketing has always been an important tenet of a successful business. Apple is the prime example of this: their adverts elicit feelings of a luxury and premium product that induce people to buy their phones with very little other information.
The importance of marketing stems from the fact that it permits firms to strategically broadcast their product or service to their demographic specifically. With the development of search engine optimization (SEO) over the past few years, this has only become more prominent.
5. Professional Website
The primary reason for a business to invest in a website is the pure credibility it provides them with. While a presence on social media platforms such as Instagram, TikTok, and Twitter is helpful in growing the renown of a business, nothing showcases a business’s trustworthiness in the eyes of a customer more than a website.
It acts as a central hub for all activities relating to your business from which all other aspects of a business’s digital presence can extend outwards.