I know many of us are scared… not necessarily at our current situation … but what the future may bring during and after COVID-19. And it’s true — these are more tumultuous times than usual. But from adversity comes innovation and challenges can shake up our normal routines so we are able to see new opportunities. None of us know what the “new normal” will be but challenges can be an opportunity to shape the new normal.
As a business, you have two choices… hunker down and wait for it to pass and hopefully go back to your business as usual or you can look at it as an opportunity to adjust and gasp!… maybe even thrive and improve!
Let me give you an example:
Retail is a difficult market in the first place and during a recession it is even more hard hit. During the 2000 recession, many retail establishments understandably did massive layoffs and cost cutting measures so they would survive.
Target did things a bit differently – it increased its marketing budget by 20% and increased the number of stores from 947 to 1,107. It also made strategic partnerships with Amazon and high-end designers to establish its role as an inexpensive but stylish brand. They also took steps to reduce costs by improving the efficiency of its operations.
The result? Target grew sales by 40% and profits by 50% during the recession and its profit margin which was 9% in the three years before the recession, was increased to 10% after it. (Harvard Business Review)
The key is not to just increase your product line and marketing. What set Target apart from their competitors was they took a hard look at HOW they delivered and made changes to reflect the needs of their customers. For example, it changed their store format to double the space devoted to food and differentiated themselves from Walmart with their designer lines.
The COVID-19 pandemic may be slowing your sales, or even stopping them entirely. Businesses that wait for things to go back to “normal” may not survive. The companies that will survive and may even do better than before the pandemic are ones that adjust and look for opportunities.
And there will be opportunities – and I’m not saying that you should take this as an opportunity to price gouge or take advantage of other’s misfortunes. What it DOES mean is that there are new needs that didn’t exist before and aren’t currently being met and with this “pause” in business, you have an opportunity to look at your business processes and improve and refine.
I know I’ve been doing lots more web-based meetings and my knowledge of technologies to help me with that have improved. I’m planning on doing some web-based interviews with professionals that support my Retreat business (Retreat & Learn) and that would have never occurred if I wasn’t forced to stop and reevaluate my current methods of operation. I am continuing to explore other ways I can improve my businesses and I am sure these discoveries will be beneficial in the long term.
How are YOU making changes to YOUR business operations that will help your business thrive and grow?