While the worst of the pandemic seems to be behind us, its shadow still hangs over business supply chains and staffing issues. Meanwhile, challenges like the climate crisis and inflation are causing their own brand of turmoil.
While 2023 isn’t a bad year to start a new business, there have been better years. Here are a few things to keep in mind as you ramp up to the grand opening.
Ongoing supply chain challenges
The supply chain is still hobbled by the effects of the pandemic, affecting industries ranging from computer chips to potato chips. Building a business from scratch gives you a rare chance to design your supply chain from start to finish for minimal risk of interruption.
Relying on local sources seems like the obvious solution, but depending on your business, this might be difficult or impossible. You also need to consider the supply chains of your vendors. They may make the item you need just 10 miles away, but the machinery that makes that item may have parts from China, Bangladesh and Brazil. And machines break down.
Eliminating supply chain risks may be impossible, but you can still endeavor to minimize expensive interruptions.
Inflation
Inflation may have cooled down by the time you read this, but the cascade effect of inflation can take months to rebalance some corners of the economy. Or it may never rebalance. When filling out spreadsheets for startup and eventual day-to-day expenses, leave a healthy margin for short-term and permanent price increases.
Invest in sustainable and green products
The initial outlay of cash for things like solar panels, electric cars and biodegradable packaging may sting, but you’ll most likely enjoy cost savings in the long run. Or perhaps even sooner, considering the planet’s current fuel shortages and rising prices.
And no PR manager ever lost sleep over too much sustainability.
Leverage technology
We’ve reached an era when convincing people to embrace the latest apps and gadgets isn’t an issue. These days, most prospective business owners and entrepreneurs haven’t known a time when there weren’t an internet or cell phones.
That said, do your research. New business software and devices come out every week. Something that worked fine five years ago may have a new counterpart that works even better. If you’re designing your processes from scratch, you have a unique opportunity to embrace state-of-the-art tools.
Starting even the most modest small business can present legal pitfalls. Enlist the help of an attorney to side-step common issues before they become problems.