Starting a business and making it profitable during a recession is difficult but not impossible. Here’s how to do it, leveraging market dynamics in a time of crisis.
Let’s face it: opening a business in times of crisis is not for everyone. Economic instability does not help to make plans for the future. In addition, many markets are shrinking: demand has dropped dramatically, and many companies, even established ones, have had to close their doors.
Take your idea forward
At this particular time, how can you take your business idea forward, start a business, and hope that it will survive and succeed? Here are some tips.
1. Identify the accentuated problems and the needs arising from the crisis
Economic crises always leave a legacy: they create new needs and emphasize problems that have never been solved.
Analyze the market you want to enter and assess how your product or service can adapt to the new conditions: some niches can become very profitable.
2. Intercept the need for change
Crises, such as that generated by the COVID-19 pandemic, fuel the need for new ideas and models. That’s not us saying it, but Eric Ries, one of the most famous faces in the startup world and author of the 2011 bestseller “The Lean Startup.”
Propose your product or service as an innovation that can positively change people’s routines: it can be a winner.
3. Assess the change in customer base
During and after a crisis, the ‘average’ consumer group shrinks, while the lower and higher level groups increase. More and more people are looking for the lowest price and the highest quality.
4. Understand the mentality of investors
To realize your business idea and open a business, you may need funds and investors.
There are two types of investors:
- The conservative – prefers to hold back cash and put investments on hold
- The adventurous – prepared to invest in a difficult economic situation
With the second type, you certainly have a better chance of obtaining the funds you need. However, be careful with their conditions: they are likely to ask for more guarantees to protect their investment and better prospects of profitability.
5. Become adept at reading data and trends
When faced with an unstable economic situation, it is essential to interpret data clearly and be prepared to adapt to new scenarios. Pay close attention to the market you want to enter and try to adapt quickly to emerging trends. Adapting to new scenarios is just like trying out new video games, which can be done at ca.allslotscasino.com.
6. Select partners carefully
In addition to investors, you may need one or more partners to start your business, sharing skills, responsibilities, and expenses. Choose partners very carefully, particularly in this time of crisis. Make sure that their values, approaches, and visions are very similar to yours.
7. Intercept unemployed talent
Crises also have a strong impact on the labor market and can make it challenging to match supply and demand. Establish the profile of the employees you would like to work with, find potential candidates, and make an offer to them.
Interesting related article: “What is a Startup?“