What Entrepreneurs Should Know About Launching a Business in Turbulent Times

If you've been preparing to launch a business, you may be nervous about the recent economic instability brought on by the novel coronavirus. Does it still make sense to proceed with your plans? How will the wide-scale shutdown of schools, restaurants, and other businesses impact your customer base? Learn more about the ins and outs of launching an entrepreneurial venture in these unprecedented times.

Identify What Has Changed

If you've already built the framework of your new business by coming up with an idea and a business plan (even a rough one), you're in a good position to begin evaluating the impact the novel coronavirus has had (or is likely to have) on these plans. For instance, launching a restaurant supply business while many restaurants in the U.S. are closed may not be the best idea.

But these changes can spur you to take on new directions you might not otherwise have considered. Restaurants forced to shut down dining room service have instead begun reselling their perishable supplies to the public to cook at home. Some are even pivoting to delivery. By researching your customer base and evaluating how it is reacting to the coronavirus crisis, you can stay versatile in a quickly-shifting market. Gaining name recognition now can help position you to take off once this crisis has abated.

Identify What Hasn't Changed

It's also important to note what hasn't changed as a result of the coronavirus crisis.
In many areas, governors have announced a moratorium on evictions and foreclosure proceedings. If you're looking for a storefront, you may find landlords willing to drop lease prices or even give you a few months rent-free in exchange for payment up-front. Even if you can't open to the public yet, this will give you time to get set up and determine the best ways to market your business to your potential clientele.

The mass closure of businesses around the country means that the newly unemployed come from all ages, experiences, and income ranges. Building a talented team may be easier than you expected.

Build Your Groundwork for Unavailable Services

With many state and local government employees working from home these days or being completely overwhelmed by a deluge of unemployment filings and bill-related inquiries, things like business licensing, patenting, and even opening up a business bank account may take longer than expected.

This is the time to get your ducks in a row so that when processes do open back up, you're ready to get started.

1. Gather the documents you'll need to apply for an Employer Identification Number (EIN) from the IRS and your state's Department of Revenue.
2. Choose a business name and decide how you want to be structured (for example, an LLC, partnership, S Corp, or Corporation).
3. Decide where to open your business bank account or pursue necessary financing. Visit a well-respected lender's website to determine what you'll need to provide to open an account or apply for a line of credit.

While turbulent times can make starting a business even more nerve-wracking, they can also foster growth. As citizens come together to fight this pandemic, there has been an increased emphasis on "shopping small" and helping one's neighbor, both of which can boost a fledgling local business.