2020 has been an unprecedentedly tough year for small businesses across the country. Though the challenges imposed on entrepreneurs in the past nine months have been trying, they also push them to be creative and adaptive to tough situations. The effects of COVID-19 are predicted to linger until the end of 2021, but as long as small business owners entering the new year with preparation and a contingency plan, those effects might be lessened. As the top small business lender in Atlanta, there are a few things that we would like to suggest to help you best prepare for the upcoming year.
Tips for Small Business Owners on Preparing for 2021
Conduct a SWOT Analysis
Before stepping into the new year, it is important that you reflect on the operations in the past 12 months and see where you stand in the market by using the SWOT analysis. Have you gained any more Strengths for the business? What kind of new Opportunities do you see in the next year? What kind of Weaknesses on which you should improve to make the business more agile and adaptive? By answering these questions, you will have a better idea of how to come up with a specific action plan for 2021.
Look Thoroughly at Your Finances
The economic impact on COVID-19 has impacted almost all different aspects of society. There may have been some quiet months for your business or you may have taken on a new loan for your business. Whatever the case may be, make sure to go through your finances thoroughly and take an honest look at your financial situation. Think about whether you are on track to pay off your loan in a certain number of years or whether you may need to reach out to a small business lender. You can also consider some assistance from a bookkeeper who will go through the financial records with you and give you advice on how to be ready financially for the upcoming year.
Choose the Right Metrics and Set Business Goals
Do you like setting goals for your business before entering a new year? As a small business owner, setting a vision is important for not only yourself but also your team and your clients. While coming up with your business goals, bear in mind that the whole world will still be slowly recovering from the long-term effects of COVID-19. Therefore, it is important that your goal is SMART (Specific, Measurable, Attainable, Realistic, and Time-bound.) It is also advisable to have the right KPI (Key Performance Indicators) to effectively measure your performance and also return on investment. Though these tasks may seem daunting or intimidating, they are necessary to your business success in 2021.
First Liberty – Your Reliable Small Business Lender in Atlanta
2020 has not been easy for small businesses across the country, but we are all entering 2021 with a lot of hope for the future. At First Liberty, we have been so honored this past year to support many small businesses in the past year and help them get the funding that they need. We are big fans of entrepreneurs and we would like to see you succeed, even in the toughest of times.