Reinventing Your Business Model During A Global Crisis

If the current global economic crisis has affected your business, have you considered reinventing your business model? Due to COVID-19, many people’s ordinary lives have been disrupted, and many businesses have been severely impacted. Businesses have been forced to close their doors, and many employees have been laid off. Companies have been mandating that all remaining employees must work from home. Countries have closed their borders to international visitors, and it’s needless to say that our society is currently facing an era of unprecedented change.

For the affluent business owner, this spells disaster. The economy has ground to a standstill as a result of these precautions in place. Fewer shoppers are going out and making purchases, which means less revenue is being generated.

As the months roll by and this pandemic continues to plague the world, more and more business owners are becoming worried. The likelihood of society returning to normal operating conditions within the next few months is very unlikely. That means business owners are looking for alternative methods to keep their businesses up and running. Many have opted to reinvent their business model completely, in order to adapt to the current global pandemic that society currently faces.

However, not all businesses are negatively impacted as a result of recent events. Business owners that were quick to react to the news of the pandemic have taken measures to ensure their business continues operating as usual. Some have even opted to shift their business model online, in order to overcome precautionary measures such as social distancing. As a result, these businesses are the ones that are currently thriving while others struggle to maintain afloat. 

If you’re thinking of reinventing your business model during the lockdown, here’s what you’ll need to know.

Times of Disaster are Also Times of Opportunity

Many people go through life waiting for the perfect moment. They make false promises to themselves such as ‘I’ll do it when the right time comes’. The problem is that the right time never actually comes. And as a result, nothing ever gets done.

Successful people understand that if they want to make something happen, they need to take action. They cannot rely on external circumstances to dictate whether or not they’ll become successful. Doing so means giving up control of your life. You are allowing external things to control what you do. And if that happens, you’ll never become satisfied because you’re allowing life to push you around.

This is why many people see the current pandemic as one of the worst moments in history. But for many others, they also see it as the greatest opportunity they’ll ever witness. This is because whenever there is a disaster, there are also unprecedented opportunities to take advantage of.

For example, many countries are strictly enforcing rules regarding the safety and health of its citizens. Many businesses have enacted regulations such as limiting customer contact with their products. In order to avoid the possible spread of infection, workers must wear masks and gloves to maintain sanitary conditions. 

One local business took advantage of this newfound need for sanitation, by shifting their business model toward the creation and erection of plastic barriers. These barriers are placed in front of cash registers to act as a ‘germ-shield’ between the customer and the cashier. 

One Trait That’ll Help With Reinventing Your Business Model 

The reason this business idea succeeded so well is because of the panic regarding the Coronavirus. People are more paranoid than ever about maintaining cleanliness and avoiding other people’s germs. As a result of this fear-induced paranoia, any measures that help to ease their fears become a very good business model. 

This is an example of how one business saw this moment of disaster as an opportunity for them to take advantage of. Even though they’ve never created plastic barriers before, they did not let that stop them. Instead of sticking to their old manufacturing business, they shifted their business model to provide what the people needed. 

If you’re thinking of reinventing your business model during this time of crisis, you’ll want to think on similar terms. Instead of focusing on maintaining your brand image and reputation, focus on providing your consumers with what they want. That means analyzing what they most desire right now, and giving it to them.

You may have to do something you’ve never done before. Doing something we’ve never done before often makes us feel uncomfortable. That’s why most people play safe and never take risks. They’re afraid of that uncertainty, afraid of possibly failing. But the truth is, if you want to take advantage of unprecedented opportunities, you have to embrace the unknown. 

Opportunities occur spontaneously. As a business owner, if you’re serious about reinventing your business model during this time of opportunity, you need to be able to react spontaneously as well. 

The last time the global economy was impacted on such a level was over 12 years ago in 2008. How much longer will you allow opportunities to pass by you, without doing anything about it?

Reinventing Your Business Model is More Common Than You Think

If you’re worried about reinventing your business model and how your customers will perceive you afterward, know that it is more common than you think. Successful businesses typically reinvent their business model at least four times whilst on the road to profitability.

This is because as the times change, so must you. Technology has made it so the world operates much faster than it ever has before. Information can be obtained with a click of a button. Computers can now fit into your pocket and accompany you anywhere you go. What would normally take an airplane ticket and 18 hours of grueling air travel can now be done over a laptop and internet connection. The world has changed greatly in the last few decades and will continue to do so in the future.

Having the skill to pivot your business quickly is very beneficial in the long run. Successful business owners realize that things are always changing, and must adapt to these changes as necessary in order to succeed. As a result, the most successful businesses today are those that have reinvented their business model multiple times. They may see an opportunity in a new market, or see how a new discovery has potential for a lot of profits. Instead of sitting around thinking about it, they take massive action by reinventing their business model.

This means if you want to capitalize on opportunities when they’re at their best, you need to know how to adapt and go with the flow. Reinventing your business model is a very common practice, and in certain situations, is openly welcomed by your audience. It implies that you are keeping up with the times and always constantly innovating your business to become better.

Why Shopify is Blowing Up as a Result of The Coronavirus

One method of reinventing your business model during this time period is to take your business model online. Many business owners were alarmed to realize the Coronavirus would be shutting down the economy. As a result, they shifted their business model online by utilizing technology. This allowed them to reach more people from around the world because everyone was quarantined at home or staying home due to social distancing regulations. 

In the last few months alone, Shopify’s stock price doubled to unprecedented heights at $1,000 a share. The Coronavirus pandemic has impacted business physically, but not those online. As a result of everyone staying at home during the pandemic, more and more of them spent their time online. 

When companies started realizing that people were all online, they shifted their marketing approach as well. They started launching more ad campaigns than ever to accommodate for the sudden increase in traffic. They utilized the Coronavirus as a marketing tactic to show that they knew of our struggles. This allowed them to tap into the emotions of their audience, to win them over and turn them into loyal customers.

This meant more and more businesses would turn to Shopify as their platform for creating an online business. They took a risk on reinventing their business model, and it paid off handsomely. 

Going online is just one method you can use for reinventing your business model during this lockdown. It’ll allow you to tap into the vast amount of customers all located in one place – the internet.

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