A new survey revealed that 75 percent of all small business owners are concerned about CO VID and its effect on the economy at large. And 50 percent have noticed a decline in consumer demand for their products. With economic slowdown continuing for many businesses and startups, it’s easy to understand how owners and startup entrepreneurs are concerned. The good news is, COVID is actually a non-issue right now. Here’s why.
As of today, the number of startups has significantly declined, despite the fact that they continue to invest heavily in capital and resources. This is due in part to economic recession, coupled with high overhead costs for established businesses. One of the causes of this decline is too much debt. Many startups rely heavily on borrowed money, which ultimately results in them having a mortgage, too many loans, and too many lines of credit. The result is that many startups default on their home equity loans. When this happens, the banks suffer financial loss, as they are forced to sell the lender’s stake in the startup.
This brings me to my next point. There are two primary schools of thought when it comes to managing a startup. The first is to “do it yourself” – which is a fine way to build a business. The other is to use a home office space, rent an office building, or hire a professional business consultant. My preference would be to work with a consultant who is familiar with the home based business industry, and whose expertise lies in helping startups succeed.
Although many startups fail and incur heavy losses, there are also some that thrive. A high growth rate, a low risk profile, and a good business plan are all key elements in startup success. These startups are usually those that use leased equipment and/or a collocation facility for their servers. Here are some tips from startup experts:
Know Your Servers: A good starting point is knowing what server type you will need (i.e. Laptop, Desktop, or Wireless). You will also need to know if you will need specialised cabling, or if you can simply utilize the bare bones routing features of your chosen server technology. Some companies require a dedicated server for e-commerce, while others may have standard requirements. Depending on the size of your company, this could cost up to thousands of dollars.
Rented Equipment: Although leased equipment is usually reliable, the margins can be thin. Also, it is important to have a good understanding of your network bandwidth usage. Calculate your monthly usage, and try to estimate how much you could save by switching to a cheaper and better quality service. Of course, this won’t work if your technical difficulties are causing problems with the rented equipment.
Business Planning: Another one of the seven Covert Hypothesis for business survival tips is business planning. While it may seem trivial, the truth is that a business needs to have an idea about its future in order to survive. The old saying that knowledge is power holds true in business as well. Establish your goals and look towards the future. Create a business plan and work towards these goals every day, and you will reap the rewards later.
Outsourcing: Just like with all technologies, there will come a point when outsourcing is the best option. If you currently outsource IT, look for someone who can do the same for you. Outsourcing allows you to focus on making your product and not on managing the servers. There are several companies that specialize in providing managed services that can help you out with this aspect of running your business efficiently.