With the challenges of 2020 behind us, many aspiring entrepreneurs and business owners have embraced 2021 as a year of change. There are many positives to be found this year—from more government support for small businesses, to an improving economy, to better business preparedness.
While some may have shied away from starting or expanding a business among the economic uncertainty of last year, the first months of 2021 are showing us that there are a lot of opportunities to enjoy for small business management.
Lessons learned can prepare your business
Whether you navigated your business through 2020 or observed from a distance, there were many lessons to be learned from the year’s challenges. By implementing some of these lessons into 2021 and beyond, all business owners can prepare their companies for potential challenges and come out stronger in the end.
One of the most important lessons was the need for flexibility. Businesses were forced to adapt at a moment’s notice. Those that did it right were able to shift their products and services to new platforms, cater to more specific customer needs and even venture into new areas of business by staying adaptable. Implementing these skills into the coming years will certainly position businesses for easier growth and market navigation.
There’s less competition
Unfortunately, 2020’s challenges led to some businesses exiting the marketplace and prevented even more from getting started. Those businesses that did weather the storm might have held back from growth or major changes, too.
This means that the market is ripe for new small businesses and innovations. As entrepreneurs did research and found solutions to people’s needs over the past year, parts of the market have been left underserved. Now is the perfect time to create a new business or business segment and meet some top-of-mind needs with less competition.
The Small Business Administration is incentivizing banks to lend to small business owners by increasing the loan guaranty to the bank from 75 percent to 90 percent.
Additionally, the Economic Aid Act authorized the SBA to provide debt relief to 7(a), 504, and Microloan borrowers. While funds last, new SBA loans between Feb. 1 – Sept. 30, 2021 qualify for three months of principal and interest payments to be paid by the SBA, which is essentially “free money” off your loan! This combination of benefits can make it easier for businesses to get a leg up in 2021.
Start planning early for your business
If you’re thinking about launching a new business or taking steps to expand your current one, 2021 is the year to do it. With a positive combination of market factors, things are looking good for small businesses this year. Get started on your business planning right away to beat the crowd that’s sure to come later.
Interested in exploring small business financing options for 2021? Contact Tenet Financial Group today!