The Coronavirus has disrupted traditional business models for many organisations, forcing them to rethink their business strategy. Luckily for entrepreneurs, their innovative and creative mentality places them in a unique position to adapt to change and seek out digital opportunities even in the most troubling of times. The key challenge for start-ups will be finding digital opportunities that help them stay relevant post-lockdown. To achieve this, here are some important observations for entrepreneurs to keep in mind:
1. Focus on sustainability
It is tempting to focus on opportunities that respond to the immediate needs and demands of your customers. However start-ups need to assess whether these opportunities will be relevant in the long-term. Successful start-up ventures are not just about survival in the short-term – they require long-term planning for different potential scenarios that may arise in the future. Tailoring your business model completely to the Coronavirus may lead you to lose your competitive edge in the coming years when the particular digital demands of the pandemic are no longer so relevant.
2. Plan for long-term customer engagement
Start-ups that appear to opportunistically capitalise on customer needs during the pandemic will come across as ingenuine, most likely losing customer favour in the aftermath of the pandemic. While consumers may benefit from these services in the coming months, entrepreneurs run the risk of losing customer loyalty and trust in the future. Working towards a transparent, agile business model that meets the changing needs of your customers will help keep them engaged post-lockdown.
3. E-services are not the only option
Start-ups that offered e-services prior to the lockdown have certainly had a competitive advantage during the pandemic. While e-services such as e-commerce, remote working tools and e-learning are extremely relevant for customers now, the most successful entrepreneurs will likely be those that look beyond e-services for fresh opportunities. Start-ups that focus not just on integrating e-services but also groundbreaking technological innovations such as AI are more likely to stay in the lead in an increasingly digital society over the next five to ten years.
4. Monitor the fundraising outlook
Prior to the pandemic the development of start-ups was on the economic radar for many governments across the globe, recognising their potential for sustainable economic growth and innovation. The devastating financial impact of the pandemic has in many countries cut short this funding, which may be difficult to redeem in the coming months or even years. Creating a flexible business model capable of surviving on the limited stimulus packages that certain governments are offering start-ups to help them survive during the Coronavirus will help you stay afloat until the global economy starts to pick up again.
While the Coronavirus has highlighted the limitations of certain business models, it has shed light on what future successful business models might look like. Entrepreneurs, renowned for their innovation, agility and forward-thinking ideas, must now bring these skills to the fore, jumping at opportunities that lead to long-term, sustainable success rather than simply immediate relief or short-term customer engagement.
