3 Tips for Starting a Business in 2021 | Evergreen Franchise Advisors
Every time brings its own challenges for starting a business, but this one certainly seems to have well more than its fair share. If you’re thinking of making the move in 2021, here are three tips that could help you be ready to face some of the realities of this era.
Be Ready to Pay More for FF&E
A combination of factors put the United States into a supply chain crisis in 2021, including staffing issues, shipping halts, and a buying surge resulting from pent-up demand. One result of all that is that operators are struggling to find some of the items they need.
Higher costs of getting items to market are causing inflation in prices, while other items are unavailable altogether or at least on significant backorders.
Want to avoid those high costs and headaches? If you’re lucky, you may be able to find items you need secondhand from operators who are upgrading or businesses that closed.
Those pieces may be sold by the owners themselves or at auctions and should come with significant savings over new. They also don’t come with some of the benefits of new equipment, including manufacturers’ warranties and the latest upgrades, but they should at least get you up and running.
Prepare for Shortages
The same supply chain issues that may push many entrepreneurs to auctions or to face high FF&E costs are causing all sorts of challenges for operators trying to get what they need day-to-day. While being part of a franchise typically comes with supply benefits, such as priority buying and sharing among locations, you may still find yourself short on some key items.
In many cases, the best you can do is just stay agile and find a way to adapt around the issue. For instance, if you’re looking to get a walk-in cooler for a new restaurant but none are available, you may need to get a couple extra reach-in refrigerators to get the storage you need.
Another best practice is identifying alternative sources for your must-haves before you get into a crisis. If your landscaping business depends on a certain fertilizer, you may want to find one or two other products with similar compositions that could stand in if you should get into a pinch. Just make sure the franchise you’re working with allows for such substitutions before you end up in trouble.
Study Your Labor Market
Speaking of shortages, labor supply issues are causing issues in almost every industry. Opening right now means ensuring you’ll be able to recruit and retain the workers your operation needs.
Among the factors you may want to investigate are:
- The unemployment and employment rates
- The median pay and how businesses offering less than that fare in their recruiting efforts
- What recruiting strategies and avenues are available to you
- What the labor pool looks like and how much of it is equipped to serve in the roles you have
With that information in hand, you should have an idea of how likely it is you’ll be able to hire as you need to and what it might take to recruit the people you need.
If you’re interested in starting a business in 2021, the experts at Evergreen Franchise Advisors can help you find a concept best suited for your skills and market from among more than 500 of the leading opportunities. Schedule your free consultation today and let us help you get started!