3 Easy Ways Small Businesses Can Thrive in 2021

2020 was a rough year for just about everyone, but especially for small business owners, Black women and other POC, and those who fall into both categories. For those entrepreneurs who are still surviving the Coronavirus recession, it’s important to use every resource to your advantage and be aware of every trend to succeed in this rough economy.

Keep Personal and Business Finances Separate

It’s no secret that many people’s personal finances have taken a hit due to the COVID-19 pandemic. Between “shelter-in-place” orders closing down establishments, the lack of people going out and about for safety reasons, and remote schooling demanding parents stay at home for childcare, most Americans are affected to some degree.

It can be tempting to use money earmarked for your business to pay an overdue medical bill or put gas in your tank. However, this has a large potential to backfire and cause both your business and personal finances to suffer.

Before focusing on your business, it’s important to make sure your personal life is in order. Thankfully, there are tools at your disposal to help you in this matter. For example, if you currently don’t have one, save any surplus money you have into an emergency fund (preferably in a high-yield account.)

This is especially important for entrepreneurs, who may not be covered by traditional unemployment insurance. Once you have three to six months of living expenses saved up, consider contributing to your retirement fund.

Other steps can be taken as well to reduce your cost of living for a more secure financial future. One way to reduce your monthly expenses would be to write out a monthly budget and see where you can cut costs.

For example, take a look at any subscription services you pay for and decide if they are really necessary. Shopping at discount outlets like Aldi or Save-A-Lot can also leave you with more cash in your pocket.

Even though the economy is struggling currently, there are still some ways to cut costs and save money. Right now, interest rates are at a record low, making it a great time to refinance your mortgage, student loans, or car loan.

With so many people not wanting to go out for goods and services, there is the potential to make a lot of money on the side in the gig economy, such as working as an Instacart shopper or Uber driver. Depending on your state, there may also be the option to work as a contact tracer. That being said, make sure to take all COVID-19 precautions if you go this route for extra cash.

Have a Solid Online Presence

Online shopping and marketing has grown exponentially since March 2020, and there’s no indication that this trend will reverse. This means that any business that wants to do well in the future needs to have a strong online presence.

If you don’t yet have a website or online store, it’s critical that you make one now. Providing a way for people across the globe to access your products and services safely can increase your sales. If you have an online presence, comb it over thoroughly to make sure it’s up to date.

For the best results, your website should have a user-friendly design, easy to find product pages, and a simple, quick checkout process.

Of course, there is more to a good online business than just the website. You want to make sure your marketing strategy is up to snuff as well. Things like high-quality, informative content will draw readers (and potential consumers) to your store.

It’s also important to follow search engine optimization (SEO) best practices to make sure your site ranks on search engines, leading customers to your page. Also, make sure your social media presence is being updated and monitored regularly, as these platforms are a great way to interact with your customer base. Last, but not least, make sure your online presence is easy to navigate by desktop, mobile, and tablet.

Take Advantage of Technology

Previously, we discussed the importance of having a website and online store in the digital age. However, there is more to business technology than just a website and Facebook page. Many new tools have been developed to help improve your business’s time management and productivity.

Using project management software allows you and your team to determine how much time you are spending on projects and where you need to reallocate resources. There are also email organization programs that can help you and your employees stay neat and organized.

Proper organization helps reduce the amount of time your team spends on tasks, saving you time and money. Communication is also a critical part of any business. Investing in video conferencing software is also helpful, as a team that communicates well will perform better.

This also gives you the added advantage of not having communication lines shut down in case of another lockdown. Lastly, you can look into automating simple tasks using bots, allowing you and your team to spend their time on more complex and important tasks.

Being a small business owner is not an easy task, especially in 2021. However, with the proper tools and preparation, you can thrive during this new year, and for many years to come.