The true scale of global damage, that the human response to the pandemic – more than the pandemic itself has caused is yet to be ascertained. But we can see the stress marks already as economic superstructures and businesses begin to fail. The picture is not-so-bright, and businesses are adapting their operations for it.
Our leading story for this brief, explains how in reality, the gloom is just a façade and the opportunity silver lining may just lie a little bit outside what you can see.
The Pandemic was the Best Time to Start a Business. The Next Best Time is Now.
The fundamental principle of business is that someone who is enterprising enough to obtain and direct capital assets and labour to create a widely accepted solution gets rewarded. It follows the Jobs Theory – that people have jobs for which they look for the best products to hire to the job.
The Jobs Theory is very fundamental to Inbound Business methodology. At the heart of it, is the basic idea that your business is a solution for hire. Simply put, it meets a need.
Why were many businesses destroyed – some forever?
On the face, businesses closed down due to lock-down orders. At a deeper level, the reason why many businesses closed shop was a lack of cash which was driven by a lack of buyers. That begs the question, why did the businesses lack buyers? Beyond stay-at-home guidelines, why were people not buying? Obviously, the jobs the businesses were supposed to serve, did not all just disappear… So, why?
1. They were not producing what people needed in a pandemic.
“Non-essential” businesses become one of the commonly used phrases of the pandemic. There is a reason for that. Luxury clothing stores, cinemas, airlines and sharing-based businesses like AirBnB and other non-essential businesses have taken direct hits on revenue and profit margins.
It’s simple really, with no one travelling, events and conferences cancelled and everyone staying home, a fallout is simply inevitable.
2. They were not producing what people wanted in a pandemic.
Netflix is not an essential business by any stretch of the imagination. However, its revenue shot up during the pandemic as 15.8 million bored people looking for content to fill their idle hours subscribed to Netflix’s streaming service. This translates to increased profits – the reward for providing what people want.
3. They were not selling.
Sales is everything – or a large part of everything at least. Businesses that could not optimize their messaging to reach potential customers during the pandemic simply lost out.
Businesses that did not have processes to deliver their products to customers or required the customer to shop physically were simply unprepared for the storm. They had what people needed or wanted, but they could not get it to the people. They could not sell.
It’s easy to be overwhelmed especially as an entrepreneur just getting started and throw up the towel. But if you can look carefully for the lessons in business administration and growth contained in this pandemic, you will see the opportunities lurking behind the depressing news on TV, radio, print and on your phone.
Photo by Alex Holyoake on Unsplash