The past year has been tough on businesses, especially small ones with little financial leeway to stay afloat amidst a global economic crisis.
So it’s surprising to learn that this past year, the rate of new businesses launching is the highest it’s been in a decade, according to the Wall Street Journal. It turns out that a recession can actually be a good time to start a business, with increased demand, a need for solutions to problems posed by the pandemic, and a large pool of talent looking for work.
As people are working from home, more may be wondering whether now’s the time to launch their ideas and passions into a business. Here are a few things to consider before you begin.
As more businesses are launching, map out where yours fits into the current landscape of the community. Are you filling a need that isn’t being met? What does your research tell you about the customers you hope to reach? When considering launching a new business, Forbes recommends that new entrepreneurs start small to see whether their business is scalable and feasible before growing. This can also help you refine your product or your mission to make sure what you’re doing is of great quality and manageable for the resources available to you.
It’s been difficult to meet in person this year, but perhaps your dream business is to open a bakery or a bookstore in the center of downtown. Or maybe you’re an artist and you’re hoping to launch your artwork online through an Etsy shop.
This is just the beginning of considering how you want your business to exist, but these questions will lead to important tax and legal questions. Perhaps you want your business to be a sole proprietorship, a partnership, or a limited liability company. Whatever you choose will impact how much control you have, taxes, and financial protection should your business fail. The U.S. Small Business Administration can walk you through what your options are.
Starting a new business comes with risks. You might have buildings, personal property, liability for people working on site, liability for property damage, and other legal liabilities. Just as it’s exciting to start a new venture, it’s important that you’re protecting yourself, your employees, and your passion with insurance. That way, you can focus on creating the best business you can and let your insurance worry about the rest.
At Sea Mountain Insurance, we’re here to support your business needs, whether you’re a small business just getting started or you’re looking to protect the commercial entity you already have in place. Contact a Sea Mountain Business Insurance Specialist for questions about the business insurance that’s right for you.
