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Adapting To Change: How New And Existing Businesses Have Attempted To Find Opportunity In Uncertainty

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Adapting To Change: How New And Existing Businesses Have Attempted To Find Opportunity In Uncertainty

The COVID-19 pandemic has forced small businesses to reassess the ways in which they operate. In many ways, this has been a difficult and seemingly impossible task, as shutdowns and social distancing measures forced owners to scale back operations and caused cash flow to slow or stop entirely.

But over the months of social and economic privation, new and veteran business owners have called on their ingenuity and determination to survive one of the largest challenges the contemporary world has faced. By leveraging their technology, communities and future ambitions, some businesses have been able to thrive in the face of adversity.

While not easy or straightforward, business owners are finding new ways to succeed in the middle of a global health crisis. And although not every approach will fit every business model, America’s entrepreneurs are revealing that success can be found even in the most trying of circumstances.

New Businesses Keep Coming, Especially Online

The clearest signal that the spirit of entrepreneurship is alive and well even in a period of uncertainty is the large number of applications for Employer Identification Numbers, which spiked through the summer by roughly 40%. Among these new corporations are a slew of online businesses that are finding success in building a virtual customer base by offering unique products and services at a time such luxuries are increasingly scarce.

Detroit-based entrepreneurs profiled by Crains Detroit Business started operations from their homes, offering everything from tee-shirts and fashion items to custom designed floral arrangements and care packages. Despite launching amidst the pandemic in a highly impacted region, these businesses owners built up their clientele through social media and word of mouth.

Another home-based business model seeing increasing success in the current environment are home-based bakeries. New York’s Syracuse.com publication profiled several such operations throughout the whole state, which has also suffered from a high influx of cases, decimating the business landscape.

Again, these companies leveraged the visual appeal of their products to advertise on Instagram and other photography-centric social media sites to build awareness and generate an audience around their efforts to build a business.

Businesses Bolster Their Communities

One of the hardest-hit industries over the course of the pandemic has been those centered around large crowds and close-contact events. Caterers, venues and hospitality businesses have struggled to find ways to adapt their business model in a safe or sustainable manner under the current health climate.

The solution for many new and existing companies has been to pivot thor operations and appeal to the community around them by lending whatever aid they can to those doing their best to beat back the virus.

Back in April, the New York Times profiled Milwaukee, WI, startup Washbnb, which focused on providing cleaning services to Airbnb and other hospitality establishments. When the pandemic hit, Washbnb’s owners looked to help the most vulnerable businesses in their community by starting a sister business, Washhero, offering cleaning services to care homes and retirement communities on a pay-what-you-can model.

In a more recent article from the Times, caterers were interviewed and spoke to how they scaled down their businesses and leveraged their logistical expertise to provide food services to front line workers at hospitals and care centers. Others have used the downtime to expand their menu and provide other services like grocery packages alongside their food offerings.

In addition to these new business models that emerged from each business’s existing resources, other firms have shifted their wholesale models to direct consumer sales. Baldor Specialty Foods, a New York-based wholesaler and distributor, has found a new revenue stream for food and grocery delivery. And although they have a fairly high minimum order amount of $250, the opportunity to buy in bulk and avoid multiple trips to the store could not only save consumer’s time and money, but also their well-being.

Taking Time For A Comeback

Of course, with the onset of autumn and winter and the threat of a fraught cold and flu season exacerbating the pandemic, many businesses may not have a feasible path to building revenue at the moment.

In lieu of that, some business owners have decided to step back from generating revenue, instead putting their efforts in hopes that they can return open their doors in 2021 stronger than ever. This may mean remodeling facilities, restructuring supply chains or finding new ways to cut back on overhead costs.

Whatever approach business owners need to take in this uncertain time, whether looking to make a new start or continue on stronger than ever, Credibly is fortunate enough to be able work with entrepreneurs to provide financing through all situations. By optimizing our own data-driven insights, Credibly is able to provide contract terms that aim to help businesses weather the current hardships they are facing.

 

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Posted-In: Covid-19 CrediblyFintech Small Business General