Tired of reading, then listen.
Coronavirus has since been a challenge to the world as a whole, a war every country must come together to fight with the incessant increase in the virus among humans. The Nigerian government took brisk action by enforcing a maximum number of 20 people at any social gathering, which affected businesses and all other activities. For some people, the pandemic presents the end of the world, for some, it’s a hiatus to global activities, sports, business operations while some find it as a time to have fun while self-isolating. For the startups, the pandemic presented itself as an eye-opener while existing businesses have a mountain to climb.
According to Paul Statham, CEO at Condeco Software, “Coronavirus is accelerating working from home, a trend that was already happening in many businesses and organizations”. Find out how to effectively improve your productivity working from home.
For the existing businesses, the Coronavirus led to a few crises such as:
- Poor Sales – Most companies had a decline in sales due to the fall in demand. The panic from customers discouraged them from purchasing goods or services.
- Incur Losses – A company is bound to incur loss when the fixed cost in the short run is higher than the total revenue.
- Staffs Retrenchment – Existing businesses are adapting to operating with a very limited number of staffs which has made it necessary for an online presence for every business if they have to remain relevant. This also implies that most staffs are not resuming their previous jobs.
Nevertheless, the pandemic hasn’t strictly been a negative impact to business. While some assumed this lock-down as a time to have fun and tick some task on the bucket list, some (startups) found an opportunity to float their businesses better; as we understand, opportunities are born from challenges.
Some of the advantages enjoyed by the startups are:
- Improved Business Plan – For a startup, tweaking business plans to adapt to such crisis comes to mind as an observer to the market. For some existing businesses there were no backup plans. Even in crisis some existing businesses weren’t ready to be flexible. A rigid plan is bound to fail the test of time.
- Online Presence – Though before the crisis, 90% of companies had an online presence but only a few could be substituted to help manage the business remotely. Some existing businesses only appeared online but couldn’t do business online. With the present pandemic disrupting activities, a substitution online will help minimize loss and keep activities with the sole aim of engaging customers. Most Startups have skipped this hurdle because doing business online is the major mode of operations as of now. What a better time to start your business.
- Marketing/Promotions – The engagement on the internet during this pandemic is twice the usual number as it used to be. Humans hate to be restricted, and the only way to reach out beyond their four walls as of now is through the internet and media. This would mean that every business share from the same market online regardless of the niche which presents a perfect timing for online promotions. A startup can leverage on the internet without a trouble of legitimacy. A startup customers’ base will grow if a product is perfectly advertised to provide the expected solution.
- Low Capital Budget – Being one of the most important factor for starting a business, the pandemic serves as a leverage to cut-down the expected cost. Starting small has always been the plan for most businesses, but with the Coronavirus crisis, you can start your business smaller.
One thing is certain, things wouldn’t return to the way it used to be.