Ventures worldwide had to adapt to the changing customer behaviours and business circumstances and find opportunities during a pandemic that shut down the world. They had to employ great creativity and innovation to develop new business models that would match the market’s needs.
Several companies were forced to cut costs, some were obvious expenses like business travel and office rent, but others were more drastic, like cutting business lines, giving up on projects, and firing part of the workforce. Soon after the pandemic started, many entrepreneurs understood that the crisis could go on for a long time and started making preparations for a forced business hibernation. One strategy that affected everyone was that most companies using service providers had to renegotiate their contracts’ conditions and rates to benefit from more flexible payment solutions and lower fees. Some ventures had to part ways with their suppliers and sign contracts with a big partner that could provide all supplies. In some instances, companies even had to fire internal staff and externalise projects and tasks to cut down costs.
Here it’s how companies managed to stay afloat during this challenging time.
Investment in innovation
The only way to stop the virus spread was to enforce strict lockdowns worldwide and encourage employees to work from home when possible. This impacted and reinvented the way companies function and people work, triggering a great reliance on technology. The direct result was a growth in the level of investment in technological innovation. For businesses to stay afloat, they had to ensure their staff continued to work from home as they would if they’d be at the office, so they integrated online services and technology in their operations. This required, in many cases, the development of new digital systems, software, and communication means.
For example, therapists had to switch from offering in-person services to providing personalised online therapy sessions. Even if the lockdown forced people to stay at home, it doesn’t mean they needed counselling less than they did before the pandemic. The clinics and practices that wanted to stay afloat during the pandemic had to rely on technology to provide mental health services online. It was an opportunity for many healthcare providers to innovate their therapy services.
Businesses switched to online operations
The pandemic triggered the closure of many non-essential businesses, including shops, museums, cinemas, and theatres. Therefore, some of them had to consider the option of going online because if they failed to digitalise their businesses, they faced bankruptcy. During the multiple lockdowns the world experienced, few people were able to leave their homes, so their purchasing habits changed. They were willing to spend money only on services and products they could buy from the comfort of their homes. Therefore, online shopping has become the main means of purchasing worldwide. The Internet allowed people to buy the services and goods they needed with a few clicks. And the greatest benefit eCommerce provides is that it offers access to a global market, so customers can choose from a wide array of solutions.
Sadly, according to statistics, only a small number of small businesses have a website that also acts as a sales channel. During the pandemic, several companies had to decide if they go digital and develop online websites or struggle to survive. Some businesses also had the opportunity to sell their products via online platforms that promote small local businesses.
Improved workplaces
Besides the known risks associated with workplaces, the risk of COVID-19 infection was also a threat for businesses during the pandemic. Therefore, the companies that couldn’t send their workers home because they provided essential services had to search for ways to prevent their staff from catching the virus. They provided the workers with protective gear like masks and shields, offered access to antibacterial solutions, and instituted measures that promoted social distancing.
With fewer people on their premises, they could also improve workplace safety. Several businesses evaluated their headquarters and adopted new workplace safety measures to provide their employees with a safe work setting to make them feel confident and encouraged to do their work. The companies that failed to provide their workers with a safe workplace faced hefty fines and lawsuits because personal injury victims benefit from the assistance of companies like Accident Claims Advice if they want to claim compensation for workplace injuries.
Rebranding company image
The companies with few resources to rely on during the pandemic suffered more than the others. For some, the sole strategy that could help them stay afloat was rebranding. Changing the company’s image and including new products and services in its lines was an effective way to stand out in the market and attract new customers. Rebranding is a successful way to use psychological tactics to a brand’s advantage because it changes the audience’s perceptions of a business and encourages them to engage with it. A series of companies affected directly by lockdowns had to rebrand their images and show they’re committed to providing services that meet the public’s needs.
New business novel
The COVID-19 pandemic showed small and large companies across all sectors that they need practices in place to help them deal with unexpected crises. Only creative, adaptive, and resilient brands would survive such a situation. Many ventures faced the question, What makes them resilient? One answer would be agility because a company with an agile business model could gain momentum during a challenging moment. An organisation’s agility is the capability to develop creative solutions, adapt, respond efficiently, and lead change when dealing with difficult issues to gain a competitive advantage.
If a company can remain agile during challenging times, it has higher chances of survival and success. As expected, the several lockdowns greatly affected all businesses, and they experienced a decline in sales and the number of people purchasing from them. Changing their business model allowed them to respond to their customers’ new needs and remain effective players in the industry.
