Wise businesses learn from difficult times. You cannot control much of what happens in this world. And you certainly can’t control what happens to your business.
Do you remember hearing about this coronavirus thing and how it was affecting China in December and January?
It was easy to shrug off then.
But sharp business minds like Pershing Square hedge fund CEO Bill Ackman turned crisis into opportunity. The company reported that it was able to turn $27 million into $2.6 billion as a result of coronavirus.
Don’t be too envious because it really helped the company only slightly more than offset massive losses in other areas. Basically, they held positions in credit protection on high-yield bond indexes. These positions rise in value as the odds of corporations defaulting on the bonds increase.
Interesting story, right?
Here’s what you can learn from coronavirus:
1. You Always Have Opportunity
While your product or service category may have been hit hard by the coronavirus, demand surged elsewhere.
Consumers shifted purchasing to essentials. Smart companies moved their business to feed the demand.
For example, many clothing companies reduced the time and resources they invested in their apparel and instead began producing facemasks.
Some sources showed that as much as 50% of the fashion market disappeared as a result of COVID19.
But face masks? Clearly, demand surged for those. And while those companies may still be struggling financially (who knows?), they at least have a strong supply of revenue coming in that will help them make it through the coronavirus pandemic.
2. You Can’t Over Prepare for Disaster
Crisis reveals the largest cracks in your business by turning them into canyons. But that may not be such a bad thing.
Now, you might know how much cash your company should have available to cover operating expenses.
Or, you might learn how to transition to in-demand products and services.
The point is that you learn the lessons. You always have the option to deny and rationalize what is really happening.
But if you learn and adapt, your business will be in a stronger position going forward.
3. You Must Master E-Commerce
One clear trend is that more people will purchase online than ever before. Baby boomers, who have shown some reluctance to buy online instead of in-store, now have ample reason to shop online.
Millennials are becoming B2B buyers and decision makers. You know how much Millennials prefer to do their research online.
The point is that, regardless of your market, you have ample reason to master online business.
Hardship teaches. But when you come through, you’ll be better prepared to navigate any difficulty that arises in the future. And you have a great opportunity to bypass your competitors who may not have the same attitude towards coronavirus.