Why and How to Start a Pandemic-Era Business in SD
When it comes to building your future, starting a small business could be the perfect path to start on. But is now the right time to launch a company or invest in a big idea? The truth is that now is an excellent time to start pursuing your dreams. You can learn more about launching a local company with these tips from Advantage South Dakota.
Why Starting a Business in South Dakota is a Smart Move
Although some organizations have gone bankrupt during the economic downturn, other industries are thriving. In many cases, pandemic “pivoting” has saved many business models.
Think about curbside pickup for the food industry or eCommerce for retail stores. Tons of industries are seeing enhanced sales, especially as folks are shopping online and looking for new ways to connect with their loved ones remotely.
Of course, not every business is doing well during the pandemic. In some cases, closures could be beneficial for you. If you’re looking for restaurant equipment or office furniture, for example, there are plenty of liquidation sales to explore. But you’ll also find low business interest rates and even government funding programs for new companies just starting out.
How to Start an SD Business Mid-Pandemic
Starting your South Dakota company starts with a few essential steps. You’ll need to handle necessary paperwork, secure startup funding, and poise your company for success.
Handle Business Paperwork
Creating a business entity is the first step toward running an above-the-board business. You can form an LLC to take advantage of tax benefits, lower your personal liability, and spend less time doing paperwork.
Especially if you file on your own with a Certificate of Formation or hire a formation service, you can skip expensive attorney fees. Just be sure to check local SD regulations on business structures and rules before filing. Also, explore different permits and licenses your organization may need in South Dakota. Many industries require special licensing, so it’s worth looking into before you spend any money on equipment or employees.
Secure Solid Startup Funding
No matter your business model, some startup funds will be necessary to get your company going. Fortunately, many business ideas don’t require a ton of overhead costs to get going. But if you plan to open a physical store or need specialized equipment (or employees) to launch your company, securing financial backing is a must. Luckily, many local South Dakota communities offer special loan programs for residents. Explore options in your area before going with potentially high interest rate loans. Also, consider federal grant programs that can help lower your up-front costs, especially if you’re in a unique or competitive industry.
Plan for the Future
There’s no way to guarantee business success when starting your company, during a pandemic or otherwise. But there are lessons to be learned from other organizations’ successes and failures during the recession. For example, turning to digital tools can help you lower your customers’ risk and ensure continued service or sales no matter what type of emergency happens in your community. Contactless delivery, online sales, and mobile payments are just a few things to consider while sketching out your business plan. Plus, many of these modern methods can help preserve your startup funds for a longer period.
There may never be a perfect time to start a business. But if you’ve been postponing your small business ownership dreams because of the pandemic – or any other personal or economic challenges – now is the time to change course. Making your big idea a reality may be more doable than you imagined. For more advice and resources on launching a company in SD, visit Advantage South Dakota and start studying up.