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Although the health crisis is not over, business the world and consumers have largely overcome the “survival” phase and are beginning to adapt to what this will mean for a living and active post-pandemic.
We are now faced with a “new normal” start-up entrepreneur reassessing business ideas that have found themselves on a foothold and exploring their potential in the current environment. But while many businesses have successfully started in times of economic downturn – Mailchimp, Airbnband WhatsApp to name a few – that means it means the right time for everyone.
When it comes to post-crisis strategic thinking, start-ups need to consider how much they need, need and budget consumers changed for the long term. Therefore, if you believe that your business idea has potential, ask yourself these four questions to determine its strength in today’s landscape:
Do you fit into the new normal?
As usual off the table, at least for a while. If you’ve been thinking about your business idea before the reality of the pandemic hit, you need to make sure you need a market just like before – or even more.
Look at your unique outlet (USP) and the meaning of the sentence in volatile markets. Ask yourself if this has made your product or service valuable to consumers, or is it seen as a luxury when people’s priorities have changed.
If your business relies on personal customers, running it now will be difficult. If you can adapt this to an online-only format, it will become a much better chance of attracting customers. But entrepreneurs who can make their digital idea to fill a new market niche should still avoid expanding their products.
“Be careful not to develop a product specifically for the needs of COVID-19 if you want to create a long-term business,” advises Gabe Sieherman, entrepreneur and CEO of the company Philosophy. “Recession startups require different strategies, but should not focus solely on decline at hand “
Although the demand for certain products will decrease after the isolation measures are completely weakened, many changes in consumer preferences will remain. For example, the crisis happened as catalyst for digital commerce, local shopping and more conscious shopping. Now that people have embraced these trends and seen the benefits, they are more likely to return to previous habits.
“No founder or novice entrepreneur should think they can just overcome this crisis, and not make any lasting changes to their product, marketing or messaging,” he says. Jonathan Grechan, co-founder of the largest pre-seed accelerator, Founder of the institute. “Their playing conditions will be radically different even after we return to ‘normalcy.'”
How crowded is your market?
The issue of market saturation is still relevant, even in times of crisis or economic downturn. While many startups launched during recessions have reported that it is easier to stand out because of fewer competitors, marketing research is still as vital as ever.
Ed McCabe, Sherpa’s Chief Loeb.nyc, advises that founders looking to launch now are carefully considering potential competitors in space. “Trying to become the ‘new Uber’ in an already saturated market. On the other hand, if you have an idea and no one else is doing it, it can also be a concern,” he says. “If so, ask yourself: what should I know?”
If you feel that your idea strikes the right balance between a crowded market versus no competition, do some digging and find out if other companies have tried to run with the same (or similar) concept. If so, what factors led to his death?
“If you see that a lot of companies have settled on the idea and they fail, it’s not necessarily because the idea was flawed. It was either distorted around the shooting, or they could just burn capital,” the argument argues. Michael Loeb, a serial entrepreneur and founder and CEO of the company Loeb.nyc. So you can use competitors ’mistakes as lessons on what no do with your own launch.
How clear is your niche?
Finding a clear niche for your product is always important, but during indefinite times it is important. Amanda Patterson, a licensed mental health counselor Indifferent therapists Bravo, emphasizes that “you need to think about the general target market and audience. Think about specific groups of people and what has changed for that group.”
During COVID-19, the specific needs of different populations and different industries changed dramatically. Now the fans in the gym are forging equipment for home training, and previous employees of office 9-5 are investing in the arrangement of the home table.
“The more specific you can be in who you are targeting, the better. For example, working mothers who are now teaching their children their children are a niche definition that has just opened up as a target demographic,” Patterson added.
While it is true that major online retailers such as Amazon have seen a large increase in their sales as a result of the pandemic, but changing circumstances have also taken advantage of this. niche brands affecting different sectors of the market.
What do people think about it?
The best way to find out how good your idea is is to just ask people. And while the contributions of family and friends can be valuable, they should also ask strangers – or at least objective acquaintances. Gabe Sieherman advises its founders to “confirm the idea with people who are disinterested third parties but fit your target profile and are potential customers or investors.” Yes social media your friend.
“Talk to potential customers through online surveys or social media,” Patterson adds. “But you have to make sure it’s not just developing a survey to test an idea. Try to get into the psychology of the respondents and identify their pain points. You can even find out that another idea comes out of it.”
Maccabi also stressed this point: “We are discussing personnel issues to get the right answers. You need to be careful and have a healthy dose of skepticism when it comes to feedback.”
“Whoever is worth the salt has to actively connect – if finding users for research is a barrier, you’re doing it as an entrepreneur,” he adds.
Ultimately, those companies that adapt to the clear needs of the market and change the preferences of consumers will be able to open a business during the new routine. However, in order to increase their chances of long-term growth, they need to take another lesson from the pandemic: Key agility.