Find Your Way Into The Economy of The “New Normal”
Today’s businesses are facing an increasing number of challenges as they try to navigate the COVID-19 tempestuous waters. The continued economic fluctuations have had a tremendous impact on business development for each and every player in the market.
As you know, I am an experienced entrepreneur who set up his own business at the age of 16, and inevitably had to face a considerable amount of challenges. From funding to building credibility from scratch, I am now where I am because I was not afraid of taking unconventional paths and distinguishing myself from the masses.
If you are an entrepreneur yourself, read my previous blog to find out more about the top three tips to reinvent yourself during the pandemic. In this new publication, I want to focus more on how the economic scenariohas changed and how entrepreneurs, CEOs and business owners need to model business practices around the new circumstances we find ourselves in to stand out in the aftermath of this economic crisis.
The greatest economic crisis
As of October 2020, the far reaching consequences of the pandemic have greatly outsized the spread of the disease itself, impacting each and every country. Over the course of 12 months, the outbreak has drained the world’s finances, causing the worst global economic crisis since the Great Depression.
Even though the fight is long from over, many businesses have already embarked on their journey to recovery. Leaders must face the current crisis with a spirit of reinvention and adaptation, carefully choosing where to position themselves in the economy of the “New Normal”.
Where is this crisis leading business practices in the “New Normal”?
The pandemic has definitely acted as an incentive to accelerate the already inevitable digital transformation of business. Educational institutions, companies and agencies have all taken steps in this direction, adapting their products and services to online platforms and providing users with a “New Normal” alternative. With the renewed lockdowns and increasing amount of restrictions, going digital seems to be the only way out of the tunnel.
Then you might be wondering, how can your business stand out if everyone goes in the same direction?
As a matter of fact, digitalization has kept many businesses afloat throughout the pandemic, providing greater efficiency, decreased management costs and safety advantages. Focusing on a few key factors will help you make wiser decisions and pave your own way into the hectic economy of the “New Normal”.
Follow the evolution of your customer base
First of all, customers’ priorities have changed, and your business practices need to evolve accordingly. Start by identifying your most loyal customers, and craft a strategy around their new needs. What are their preferences? How have their demands changed as a consequence of the current pandemic? Do your products and services still resonate with your customers in the post pandemic era?
Once you have determined how your customers’ demands have changed, try and focus on a narrower product range which covers products and services that have been identified as essential to sales and customer success.
Diversification is generally a good strategy during normal circumstances, but it requires high flexibility of resources and capital, which may not be the case for most businesses at the moment.
Take a closer look at the long-term impact of the pandemic
Additionally, I strongly believe that all businesses should focus on assessing the long-term consequences of the crisis, looking beyond its immediate financial impact. Impulsive decisions aimed solely at short-term recovery could potentially lead to future bankruptcy, even for well-established businesses. My advice is to invest time in learning how to reshape your business strategy as circumstances change and concentrate on the best profit opportunities available.
The crisis might have opened new doors that you have never considered in the past, or might have created a way for you to penetrate markets you would have previously thought were out of your reach. This, and other opportunities, are not to be missed.
Collaboration is key
Even though it might not be the first thing that comes to mind when trying to reshape your business strategy, collaboration with other similar businesses might help you get a clearer picture of the industry you operate in. Compare with others the issues you are facing and the solutions you believe will help you to overcome them. The crisis has had an extended, somewhat equal impact on every business and industry worldwide, which makes it a perfect ground to refocus your strategies and be one step ahead in the economy of the “New Normal”.
Sincerity and transparency are powerful assets in the current economic climate dominated by uncertainty, do not underestimate the power of an efficient communication system.
There will always be new challenges to face, it is how you navigate them that determines your success.
