Sep 21, 2020 | Updated: 11:04 PM EDT

5 Essentials for Startups Launching in 2020

Jun 17, 2020 05:11 PM EDT

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5 Essentials for Startups Launching in 2020
(Photo : 5 Essentials for Startups Launching in 2020)

Are you thinking of starting your own business this year? If so, you have probably outlined your plan and your goals to ensure your company succeeds. But, have you determined the essentials you need to stay competitive and afloat?

Many startups make the mistake of jumping right into opening their businesses without carefully considering several factors such as security, customer satisfaction, and funding. Here are five essentials for your startup to succeed in 2020.

1. Cybersecurity and cyber insurance

This year, businesses have seen an increase in cybersecurity threats because of the novel coronavirus. Cybercriminals are not only taking advantage of the fear and uncertainty among people to scam them but also using this time to compromise the security systems of companies. Therefore, you need a cybersecurity plan that safeguards all your systems and data from scams, including phishing emails and ransomware.

Also, purchasing a cyber liability insurance policy allows you to protect your business against the risk of cybersecurity threats. For instance, in case of a security breach, a cyber liability insurance policy can cover the cost of forensic investigations, liability, and legal defense.

2. Online sales channel

The COVID-19 virus is forcing many businesses to reorganize or risk closure. Luckily, most companies are turning to e-commerce to stay afloat and satisfy their customers. Hence, you'll have to adapt an online strategy that allows your business to operate virtually or remotely.

For example, you can open up a website or an app that allows customers to reach you and make orders. Alternatively, you can set up a chatbot within your site, allowing consumers to get real-time assistance at any time and from anywhere.

You'll also need to invest wisely in digital marketing to increase your customer base and boost your brand awareness. Since many people are home due to the shelter-in-place order, you have a better chance of increasing your sales as individuals are spending the majority of their time online.

Some digital marketing avenues you can leverage include:

  • Email marketing
  • Social media marketing
  • Pay-per-click advertising
  • Influencer marketing

3. Adequate funding

The coronavirus outbreak has adversely impacted the United States economy as the volume of activity in the market isn't as much as it was at the beginning of the year. Moreover, companies are on the verge of collapse because of low revenue, low demand, and loss of income.

Unfortunately, this makes it difficult for your startup to generate enough revenue to cater for its expenses. Luckily, you can get funding for your startup to ensure it maintains a consistent cash flow throughout this pandemic. For instance, you can get funding from investors, liquidating your assets, crowdfunding, or by applying for a small business loan.

4. A tech-savvy workforce

Your employees play an integral role in your company's success as they conduct and oversee daily operations that generate your income. Therefore, the biggest mistake you can make is hiring employees that can't keep up with your tech to improve performance and productivity.

When hiring staff, ensure they have some technical skills such as programming or Big Data analysis.

5. A budget

As a startup, you need a detailed budget that shows how and where you spend your money to keep track of your expenses. This way, you can cut off costs you don't need and monitor your cash flow carefully. Besides, a budget can help you minimize your spending and maximize your profits.

With these essentials, your startup can succeed this year.

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