COVID Brought New Businesses, Challenges to Florida

The COVID pandemic caused a lot of damage to the economy in the United States, but that didn’t dampen the spirits of entrepreneurs in Florida. Between January 2021 and January 2022, Florida led the country in new businesses, accounting for nearly 12% of them.

More than two years later, not many of them are still around. Florida may have had the most businesses formed, but the survival rate is the fourth worst in the country.

The lingering effects of the pandemic and Hurricane Ian were likely the biggest culprits, but that does not appear to be the case any longer. Business experts say that startups that are being formed today will see a brighter future.

The survival rate is increasing. People are finding a way to succeed in Florida, mainly because they are willing to take more risks. When entrepreneurs are aware of the possible business challenges in today’s economic climate, the more likely they are to succeed.

One of the biggest challenges for businesses is the same one we all have: money. Almost all of us have struggled with finances at some point, and businesses are no exception. Even businesses established a few years ago may still be struggling. There’s money available, but banks are being stingy with it. They don’t know you, so they want proof that you’ll pay them back. They want references, a solid history of your business, and several years of financial records.

Banks are hesitant to lend out money. It’s not an easy decision for them right now. There’s inflation, but also a possible recession. You definitely need to have a very good credit rating as well as a good standing with the IRS, meaning they should not owe any taxes. A credit union may be a good option, but come prepared with a business plan.

Speaking of a business plan, make sure you have a detailed one in place. A thorough plan will explain the venture and how you will operate and grow it. You should have a good idea of your future plans, the costs involved, and how you will accomplish the plan. Your plan should also include information about employees, inventory, and who is doing the books. Taxes and other costs should also be incorporated in your plan. Don’t look for funding without an idea of what you plan to do with the money.

Learn More About Business Startups

Owning a business is the dream for many people. They want to work for themselves and be their own boss, but very few are aware of the risks and challenges involved.

Orlando business startup lawyer B.F. Godfrey from Godfrey Legal can help you make the right decisions. With more than 30 years of experience, we have in-depth knowledge of both the legal and business worlds to help startups avoid costly mistakes. Fill out the online form or call (407) 890-0023 to schedule a consultation with our office.

Source:

gulfshorebusiness.com/startups-present-challenges-solutions-in-todays-economy/