How do businesspeople act in a crisis
Many young entrepreneurs tend to be afraid of the word “crisis”. The moment is quite difficult, a turning point that requires changes both in your own mind and in your actions. Those who are not ready to live and work in a crisis leave the market, but those who have been waiting in the wings can occupy the vacant niches with new products and interesting offers.
The crisis is not the end, but only the beginning…
Often inexperienced entrepreneurs are sure that they will not be able to enter the market with a new product in a crisis, because it is impossible to find investors, etc. But all this is nothing more than an illusion and delusion.
The main thing is to know the rules of “business in crisis” and follow them. Pavel Kochkin – business consultant is ready to share tips about doing business in difficult times
The main thing that everyone should understand and accept (and this advice is useful not only for businessmen, but also for ordinary people) is that the crisis is a part of life in which the initial conditions of existence change.
The main problem of people is that the absolute majority do not want to leave the “zone of habitual comfort” and delay their “acquaintance” with the new rules of life and work for the maximum period.
A true entrepreneur should not be like an ostrich (because hiding his head, you can not look at the situation as a whole), but should show maximum restraint and analytical mind, collecting data, analyzing new conditions and making a conclusion about possible developments.
The first thing to remember is that even in a crisis, someone works and serves crisis situations, and as a result, earns money. So, during the war, the need for weapons, equipment, poisons, fabrics and things increases, and during the crisis, legal departments at enterprises, lawyers and notaries begin to work at full speed.
The cost of housing, especially elite housing, falls significantly during the crisis period, as demand for this product becomes sharply limited. But the need for affordable and most economical housing increases sharply. Providing housing for refugees and displaced persons is not an easy task and obviously not for one day.
We can safely say that the structure of requests is changing – you need to be prepared for this. Those who adapt to the new conditions faster will start their own business faster and start making a profit.
If you are wondering “what is better-a large multi-billion-dollar enterprise or several small projects?”, then in a crisis, the analogy with dinosaurs is the best. Remember how” vividly ” multi-ton animals reacted to minimal changes in the climate? Yes, that’s right – the dinosaurs became extinct because they could not adapt their huge organisms to new conditions.
In business, everything is the same. The bigger and more” sluggish ” the company is, the more difficult it is for the company to respond to market changes, the more difficult it becomes for the management to keep the business machine afloat. On the other hand, small and flexible businesses can adapt to customers ‘ requirements faster and offer rational and interesting solutions more quickly.
It is the crisis that helps such small businesses find their customers – because in “normal” life, it is simply impossible to bypass the “giants of the market” without significant investment.
Step 1. Deep analysis of conditions
To successfully perform in a crisis-changing market with a new product, you must not only be able to track market trends, but also correctly predict the future based on available data.
In times of crisis, it is necessary not only to be clearly aware of the current state of things, but also to be able to anticipate upcoming events.
This is quite comparable to buying and selling a currency at times of exchange rate fluctuations. It is necessary to learn to see the situation as a whole and analyze the slightest signs.
Step 2. Analysis of the demand and developing the supply
A true businessman should be able not only to analyze the environment and determine trends in the development of the situation, but also to understand that the demand in the new conditions will not remain unchanged and the new conditions will determine new market needs.
So in a crisis, it is much more likely that a person will go to repair old shoes or give an item to an Atelier for reworking, than to go to the store for a new thing. So you should think about opening repair shops rather than investing in opening new stores and boutiques.
The crisis is not the end, but only the beginning…
Step 3. Correct pricing policy
What is the main difference between crisis and stable times? At critical moments, the vast majority of buyers stop paying attention to the bright packaging, nice design and focus exclusively on the price and compliance of the product with its purpose.
Do you want to sell milk in a crisis as successfully as before? Then refuse bright packaging, make the package minimally colored, do not add preservatives to the milk, refuse bright advertising – it is best at such moments to sell economy offers and low-key products in which the content corresponds to the price with the proper quality.
If you continue the “milk” idea, you can bet on the delivery of milk in the yards. Low cost, good quality and minimal costs for people who can not go to the market for milk, and buy it right in the yard.
Advertising move or free cheese without a mousetrap
In any situation, entering the market with a large and bulky product is faster and more successful if you offer potential customers something small, but free (whether it is a service or a product).
It should be remembered that the probe should be inexpensive for business, but it should attract people and encourage them to make an impulsive “purchase”!
As an example, consider a firm that before the crisis was engaged in roof covering, selling its services through specialized magazines. There is no market for “cold contacts”, but during the crisis it is better to stop spending money on advertising in expensive publications, and direct your efforts to promote a new inexpensive, but necessary for many services. For example, cleaning drainpipes from old leaves and branches. The cost of such a service should be quite small, so that people can afford it in any case.
This low-cost service will allow you to create a market for ” hot ” contacts and offer your friends a more significant product will be easier and more effective.
Trap products can help anyone who wants to adjust to the crisis and stay afloat.
Experiment, analyze, offer new products and do not sit still!