Living with the coronavirus as a part of our lives is slowly becoming the new normal. The number of new cases is on the decline in most parts of the world. Yet, in others like China, new cases are emerging again. This is after the country managed to limit the spread after a strict lockdown in the past. So it would be fair to say that individuals and businesses may have to learn to live with it. That is if we are to listen to the WHO.
With the economy slowly reopening, things are looking up. This blog explores how entrepreneurs can sail through this challenging time.
Avoiding Business Failure During COVID-19
The COVID-19 triggered a massive global recession. Especially in the US where the economy is expected to shrink significantly. Economies ground to a halt and businesses saw profits plunge. Countries imposed lockdown and social distancing restrictions. Layoffs soon followed. Recruiters like marketing staffing agencies seeing a massive influx of unemployed candidates. But, certain types of businesses are not only surviving the recession but thriving in it. While this may sound surprising, there are actually a few industries and business models that are recession-proof in many ways.
Businesses That Are Booming
On-demand services are flourishing. From Netflix to Amazon Video to food deliveries. Many businesses that offer their services or products on demand are thriving during this crisis. This is because most people are trying to avoid going out unnecessarily. The healthcare system is an industry that has survived many recessions. The emergence of technology-assisted health practices presents a significant opportunity for entrepreneurs. An opportunity to offer specific and viable solutions to existing problems.
The Fintech sector is the 21st Century face of the financial sector. Regardless of economic conditions, the financial sector will go on. People will always require the financial sector to make transactions, receive payments, and pay their bills. This is one reason why it has weathered the pandemic so well. Targeting these industries may be a good idea for entrepreneurs in the current situation. But regardless of what industry you’re in, certain things remain common. The tips that follow below can help you survive and thrive during an economic recession or a global health crisis.
Know Your Consumers
Understanding your consumers and their mindsets is an important aspect of the business. Even more when navigating a business through challenges. Remember, consumer mindsets shift all the time. In the current situation, millions of Americans have already lost their jobs. Most are relying on unemployment benefits to survive. A large number of well-known brands have also folded under the pressure, particularly in the airline and travel industry. Consumers have very little confidence in the economy right now, and consumer spending is taking a big hit.
All of these need to factor in as you create your customer persona. Your efforts to understand their psyche will help your efforts to convince them to trust you. And by extension, your product or service.
Build a Compassionate Brand Voice
There is no denying that this is a time of great uncertainty. People are confused and afraid. A large number of them are discovering pain points they never knew they had, like being unable to step out of the house or visit loved ones. In such a time, your brand should focus on addressing these new pain points in a compassionate manner. Depending on your business model, you need to look at new ways to be more accessible to your customers, and addressing their needs.
Budget Allocation is Key
The times aren’t just tough for individuals but businesses as well. This requires business leaders to be more careful about where they allocate and spend money. Budget allocation is never easy, and you may have to make some tough decisions given the current situation. Start by focusing on allocating your budget to marketing both your business as well as your value proposition. Another area to focus on is in improving customer experience. Your aim is to maximize spending on revenue-generating functions. You do this by diverting funds from other less-essential aspects of your business.
Make Technology Your Ally
Expanding your technology stack is one way to stay ahead of the competition. Especially during an approaching economic recession. There is no shortage of modern technology in the market that improves and streamlines business functions. It also helps in supporting management decision-making capabilities. Technology can also help you offer more ways to your consumers to interact with your business through various channels. Using technology like Blockchain, AI, IoT, automation, AR, VR, etc, you may be able to give your business the edge it currently needs.
Retain Your Best Workers
Unfortunately in most cases, layoffs are inevitable during a recession. You will have to make tough decisions, and you may have to let go of employees. But it would really help your business to retain as many of your best workers as you can. With your talent acquisition strategies, you aim to find the best talent for your business. Letting that talent go when you need it the most would be rash and counterintuitive. The times ahead are certainly going to be challenging. It is only the most adaptive and fluid businesses that will break on through to the other side. Let us know your opinions in the comments below.