Covid-19 caused so much suffering. Over four million people died because of the virus. It also brought economic devastation, which might persist years after the pandemic ends. People are thinking of ways to lessen its impact.
As an entrepreneur, you have to think about your finances and the survival of your company. The capital infusion is not enough to keep your business afloat. You must take additional steps to recover from the financial setback. It will be challenging.
You might be thinking that there is no need for you to redefine the target market. But for your company to survive this crisis, you must assess if your current base is enough to make your business profitable. Are there sufficient people to patronize your store?
Let us say that you own an auto repair shop near the National Corvette Museum. Although you specialize in corvettes, you can take care of other types of cars. In this scenario, your company survived the government-mandated lockdown. But will your business continue operating?
In this case, you must study test the waters. You can reach out to a market research guru to conduct a study for you. She can help break down the demographic that comprises your community. She will also decipher the data gathered.
Of course, you can use the free data from the government. But this is limited to simple information such as age distribution. It will not tell you what makes the population tick. You can also go through social media to review what is hip. But this restricts you to your friends and their reach.
Once you understand what your target market is, you can proceed in planning your next step. Will you continue with your current operations? Or do you need to diversify?
Most people think that brand is merely the business name. But it encompasses the company’s vision, mission, goal, and values. Some scholars even say that it can be an organization’s competitive edge. It is what sets you apart from your industrial rival.
Let us continue with the previous example where you own an auto repair shop. Ask yourself what will make you different from your competitors. What will make you stand out? In this case, why don’t you offer vehicle title services?
In this scenario, more people will seek your shop because you offer more services. Whatever your business is, you must think of a way to gather more customers. Let us explore another example. This time, we will assume that you run a coffee shop near a prestigious school.
The feasibility study says that the population leans toward the younger generations. It also tells you that this market likes healthy food choices and green practices. In this case, you must update your menu to cater to their needs. You might want to offer a healthy alternative to cronuts. Or perhaps, you will advertise that your coffee beans come from a sustainable source.
If you do this, you set yourself apart from your industrial competitors. But please remember that when you do this, you must not alienate your existing customers. Your goal is to grow your loyal base.
Tools of the Trade
Whether you will be diversifying or not, having the right tools for the job. We are not only talking about tangible assets. You should have the software to support your team. It will not only improve your efficiency. Having a digital platform will lessen frustration within your staff.
Let us tackle physical machinery. After the lockdown, your equipment gathered rust. Thus, there is a need to replace it. In our previous illustration where you ran a coffee shop, your industrial-grade refrigerator is no longer working.
You can purchase the particular machinery with the financial aid that the government gave. Or you can try equipment financing. We recommend taking this route because you will have enough cash for your daily operational expenses.
Many experts point out that people are doing their shopping online. You might think that you need to purchase a delivery van to take advantage of this trend. But before you make any decision, remember that your customers have third-party alternatives.
We must adapt to the new normal to survive. It is also necessary to remain significant in an ever-changing world. This principle also applies to business. Entrepreneurs must make crucial changes to keep their companies afloat.
The tips enumerated in this piece should help mitigate the economic downfall brought by Covid-19. But results vary. Research on other options so that you can make an informed decision.