No matter the external circumstances, starting a business will always be a difficult endeavor. During a crisis, the process becomes even more challenging. However, that’s not to say that it isn’t possible or rewarding—starting a business during a recession can prove highly beneficial. Starting a business in tough times requires careful planning, flexibility, and a knack for problem-solving on the fly. Additionally, the following 5 tips will help you prepare for your venture during a crisis!
Speak to Investors and Lockdown Financing
As an entrepreneur, you have to have the financial capital to support your business. Depending on your business plan, maybe you won’t have too many costs up front, and you’ll maintain responsibility for them. However, if you’re trying to raise capital through investors, you should speak to them as soon as possible.
Luckily, investors are always willing to invest in promising businesses. Take, for example, a business that is diving into the cryptocurrency world. As crypto is being accepted more widely, even for the best online casinos, and it’s a currency that is not as affected by financial crises, investors know there is high potential there. They’re willing to invest so long as the business plan is solid as they know the outlook is positive.
Another advantageous aspect of speaking to investors early is that they can provide insight into your business model. If they’re interested and committed to your idea, they may even help you tweak your plan to ensure growth and scalability are in your future. After all, they want your business to succeed as much as you do!
Ensure Your Business Is Relevant Now and in the Future
In times of crisis, consumption and consumer spending drops dramatically. People are not buying the same amount of items as they would in better economic positions. For that reason, you need to make sure your business is offering something relevant now. What do people need and want in a time of crisis? What will help them and improve their lives today?
Throughout the Covid-19 crisis, many businesses have flourished. These include those who manufactured plastic shields, face masks, hand sanitizers, and similar products as those are products sought after now.
While your business must be relevant now, it must remain relevant in the future for long-term success. Starting a new business that sells sanitizer is likely not the best long-term option. Rather, think about an idea that other businesses or consumers use now and will use in the future.
Marketing Can Be Your Savior
Regardless of what’s going on in the world, marketing should always be a part of a business plan. It’s how you reach new customers, exhibit new products and services, and keep the public interested in your brand. While all marketing can be helpful, how the quality of your marketing strategy is what will set your business apart.
The internet is always the first place you should go for marketing. Even more so during crises as people spend more time in their house and subsequently online. For your business, you’ll need a well-built website that provides a great user experience. Furthermore, you need to optimize your website and its content—including blogs, copy, images, and video— for SEO.
From there, consider starting social media advertising campaigns, pay-per-click advertising, email mailing lists, and you can produce content to attract users to your site. All the while, you can use Google Analytics to learn more about your users and the success of your site.
Technology Can Help You Get a Foothold
Similar to utilizing digital marketing for your new business, you can use technology even further to your advantage. Depending on your business, you can opt to sell products solely online without the need for a brick-and-mortar location. If your business is service-based, you can also get away with only offering services online.
As seen with the Covid-19 pandemic, many businesses have found similar levels of success when operations turned towards remote work. Professional meetings can be had over online meeting platforms. Business deals can be made just as easy, if not even quicker, through online interactions.
All in all, utilizing technology can save you money and still get you the clients you need.
Focus on Your First 100 Customers
As an entrepreneur, you likely have dreams and plans to become widespread. You want to have as many customers as possible in as many locations as possible. However, before you can reach such heights, you have to start small.
In a crisis, when people are more hesitant to spend money, let alone on new businesses, you may find it challenging to build your base. Thus, you need to focus on a small group of people. It’s better to provide services to 100 people and get great feedback than do so with 1,000 people but have average feedback.
You should focus on your products, services, and customer service otherwise your business will never be able to take off in a crisis. Here are some sales commission structures examples that can help improve your business.
The Bottom Line
Starting a business is always an uphill battle, and the tasks become even more difficult during a crisis. However, there is also a great upside to starting a business in such times. To improve your chances of success, you need to get your funding sorted right away, choose a relevant idea, utilize digital marketing, take advantage of technology, and focus on your first 100 customers.