Entrepreneurship in Times of Uncertainty

ENTREPREURSHIP

in Times of Uncertainty

I am an entrepreneur and researcher. As a researcher, I think in terms of tomorrow, not today.

Statistics show that entrepreneurship increases when unemployment increases.

The 2008 recession, which was not as bad as current world events, took the world ten years to recover. In light of this, ask yourself how long this economic downturn will take you to get back on your feet economically? In this time of uncertainty, several industries will change forever. In what direction will this change take you, your customers and your community? Use these questions to guide your decisions. Now is a time to pivot (see Issue 4).

Find a partner to brainstorm with and look at the following questions or scenarios:

1. Starting a new business. When deciding on which market to enter, there are three areas we must look at.

New gap to fill. What gap in your industry has suddenly opened up, is unfulfilled and will continue to do so in the new norm of social distancing? How can you capitalize on this gap in filling a need?

Old gap to fill. There are old gaps that have gone unnoticed, now more so than before. How can I tap into this area and ease the pain, potential clients are experiencing? How can I initiate solutions with my current resources?

Future gap to fill. Entrepreneurship best practice, before the market downturn, says entrepreneurs should be looking at what will happen to the market next year or in the next five years and consistently change with or before the market. Staying ahead of the market will be a little different, in that you must now consider a new norm. Once the economy starts picking up, what will people want that did not exist before. You will be creating a new market for this to work. Think Blue Ocean Strategy.

2. Keeping your business afloat should be a top

priority.

New directions based on what will happen when the current uncertainty ends. Is your current business equipped to handle the new type of market that will emerge? Many restaurants are being closed; when they reopen, they will have a smaller seating capacity, which may not allow for overhead costs to be met. What can you add to your existing services to meet the shortfall and increase customers? You may need to change your product offering or increase delivery methods.

Expand your business to survive past the current uncertainty. How can you expand into totally new markets to ensure new income stream/s without deviating from your passion or your motivation for starting the business? In the case of restaurants, you may need to become a caterer.

Status quo. I do not believe this is possible for anyone. However, if you think I am wrong, take a moment to examine; survey your client base to establish where they are. Is their disposable income the same as before the uncertainty? Will their spending habits be the same?

3. The potential for competition. It will increase in the world of entrepreneurship. How will this affect your business?

Newly unemployed will seek to create their own opportunities instead of sitting at home looking. Research shows that innovations, no matter how small, can compete with any organization, including large and global corporations. How will you combat new competition that brings new innovative ideas? Partnerships are one way, but being aware of this threat is vital to mitigate risks.

Entrepreneurs will seize an opportunity in your industry to fill a gap better than you. Some industries will struggle, and experienced entrepreneurs may look to change industries and be able to compete with you based on their history. They may seek to fill a gap you are not filling, inadvertently, creating a fuller ‘ service offering’ that may include taking from your customer base.

4. The overall impact the economy will have on

your business must be considered.

Planning will make you ready for new funding. Many entrepreneurs do not believe in business plans, but working with certain organizations require a formal or informal business plan. I have been asked many questions when selling my idea, had I not have a plan, I would not have been able to answer those questions.

In some areas, current funding will be reduced temporarily. The usual methods of financing will not all remain available. There is also more competition for the available resources. Partnership resources will be great to increase capacity because there is less disposable income in the economy. Be prepared to be creative in your negotiations for resources. A direct financial resource is not the only way you can get help.

Mindset: fear can be a motivator or a demotivator. How you mentally deal with uncertainties will impact your success. Reach out to other entrepreneurs for support, do not try to do it alone. Having weekly or biweekly conversations about experiences will encourage and motivate you. Ask for help to avoid feeling overwhelmed.

How you deal with the uncertainties mentally will impact your success. Reach out to other entrepreneurs for support, do not try to do it alone. Having weekly or biweekly conversations about experiences will encourage you. Ask for help to avoid feeling overwhelmed.