Out of the box business strategies to battle COVID-19
If we thought COVID-19 was the only menace that the world was dealing with then let’s take a look back again and make notes about ‘unpredictability.
If 2015 was the year of grand ideas and funding, 2020 will forever be known as the year of ‘change’. The pandemic not only changed the lives of people but also the fate of businesses.
The disruption was so sudden that unfortunately a lot of the business houses didn’t get enough time to react and as a result, had to shut shop. Even marquee names were wiped off and the startup sector, especially, saw loss-making companies exit.
However, even if there was chaos and unpredictability due to the pandemic, there were also new opportunities. In the middle of the chaos, we found our ‘North Star’ metric and started focusing on the profitability matrix.
Every startup at a certain point in time has to choose between ‘growth’ and ‘profit. Even though both terms are directly proportional to each other, the ‘Pareto Principle’ has to be applied here to reach a conclusion.
COVID-19 has allowed us all to look beyond and explore radical ideas which seemed irrelevant at a point in time. As an entrepreneur, these are my following tips to the upcoming players in this field.
The pandemic taught us the real value of capital and money management. A fully operational business works on a cash flow model however when the flow is disturbed the entrepreneur is rattled. Even though the business is the result of an Idea: it takes more than hard work to run a successful business.
My suggestion would be to preserve the extra cash for the rainy day and cut down on all the unnecessary expenses. Focus on what helps drive the business rather than the swanky office space which is not required.
Change the menu
What we are serving currently may not be what the consumers are looking for. A prime example of this is the launch of our RBX model. A long-term subscription plan which was a replacement for the public transport for the general public.
We focused on what the consumer wanted and the price they were willing to shell out for it. The best option is to run a survey among the customer base and figure out their requirements.
You may not be a marketing genius but if you want to sell then learn the tricks. We learned how to make reels on Instagram ditching our age-old methods to be in sync with the millennials.
The trend is your friend hence figure out what the trend is and follow the wave. Memes, reels, shorts, etc., should become a part of your lingo if they aren’t already.
I truly believe in this concept. There are enough people in the market trying to sell the same product as you. We need to find our niche and trust me the niche is always a small segment until it turns into a mass.
Growth is a priority
There are companies that have grown more than 300 percent during the pandemic. The situation and the statement may sound and look unreal however the reality is that most of the tech companies grew faster than ever.
Some saw the opportunity in new markets whereas some saw opportunities in new products.
In any circumstance, the only way an entrepreneur can implement his/her idea is through a team that trusts the vision and participates in the mission. Every goal achieved can be celebrated and every achievement can be appreciated to keep the morale of the team high.
More than the monetary benefits, we should also look into reducing the stress and focus on the non-monetary appreciations to keep the team spirit intact.
Every business has its own challenges and every business has its own approach to solve its problems. During crises, we chose to change our approach and started diving deep into the issues to find solutions.
One of the most important factors that most of us miss out on is the power of data in making informed decisions.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)